Two weeks ago I noted that we were in “Santa Claus Rally” time, which is the last five trading days of the year and the first two trading days after New Year\'s. Based on historical returns of 1.4% over that period, our S&P 500 target to match that return was 3743. On the first trading day in 2021 we had a sell off, but Santa rallied back on Tuesday and Santa finished up with a still respectable 1 percent for that seven-day period. But Santa was not ready to leave. Over the next three days Santa replaced his reindeer with bulls and the S&P 500 (and other major indices) closed Friday at a new record high of 3824. From a technical perspective, we are still in this “Bullish Trend Is Our Friend” period supported by a low Bollinger Band Index. For TSP TIPS, all three equity funds (C/S/I) hit new records highs on Thursday, and all three did it again on Friday. In fact, the “I” International fund hit a new record every day this week and seven of the last eight. As such, we are recommending the following reallocation.
Two weeks ago I noted that we were in “Santa Claus Rally” time, which is the last five trading days of the year and the first two trading days after New Year\'s. Based on historical returns of 1.4% over that period, our S&P 500 target to match that return was 3743. On the first trading day in 2021 we had a sell off, but Santa rallied back on Tuesday and Santa finished up with a still respectable 1 percent for that seven-day period. But Santa was not ready to leave. Over the next three days Santa replaced his reindeer with bulls and the S&P 500 (and other major indices) closed Friday at a new record high of 3824. From a technical perspective, we are still in this “Bullish Trend Is Our Friend” period supported by a low Bollinger Band Index. For TSP TIPS, all three equity funds (C/S/I) hit new records highs on Thursday, and all three did it again on Friday. In fact, the “I” International fund hit a new record every day this week and seven of the last eight. As such, we are recommending the following reallocation.