TSP Market Summary: Week of January 24, 2021
Key Takeaways
- S&P 500 hit record highs twice this week, driving C fund to new peaks alongside strong earnings
- S fund outperformed C and I funds by 2:1 margin, prompting tactical allocation adjustments
- Treasury Secretary nominee signals more stimulus coming with 'act big' at low interest rates
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date. For current recommendations, subscribe.
| G Fund | F Fund | C Fund | S Fund | I Fund |
|---|---|---|---|---|
| 0% | 0% | 25% | 50% | 25% |
It was a busy, short week for the markets. On Tuesday former chair of the Federal Reserve Janet Yellen and designated nominee for Treasury Secretary stated “…with interest rates at historic lows, the smartest thing we can do is act big.” Setting the stage for the inauguration and buoyed by strong big tech earnings, the S&P 500 hit two record closes on Wednesday and Thursday, peaking at 3853 before closing slightly down on Friday at 3841. For TSP TIPS, the C fund hit new record highs mid-week as it mirrors the S&P 500, but the S fund also joined in the fun with a new high. Looking at the performance rankings of the three equity funds, the C and I funds are almost equal, while the S fund has outperformed them by a 2:1 margin. Similar to making an aircraft carrier approach, we’ll take advantage of our second monthly exchange and make a slight allocation adjustment to stay on glideslope.