This week the S&P 500 recorded new highs on four straight days, including Fridays close at 4468. Tuesday's rally started when the Senate passed the $1 trillion infrastructure package which boosted economic growth stocks. July's Consumer Price Index (CPI) was released Wednesday and it showed prices jumping 5.4% since last year and 0.5% from the previous month. On Thursday we then had the Producer Price Index (PPI) rising 0.9% last month versus a forecast for a 0.5% gain. And on Friday, the University of Michigans consumer sentiment index preliminary August reading came in at 70.2, the weakest since December 2011 and below the April 2020 pandemic mark of 71.8. Given this backdrop, it really is noteworthy that the markets just kept plodding forward with each of the four record setting daily moves 0.3% or less. Looking back two weeks, the S&P 500 has made record highs on seven of the last nine trading days, with no daily moves greater than 0.82%. For TSP TIPS, that C fund has plodded along right in step with the S&P 500 and finished at a new high on Friday. Not to be outdone, the I fund also closed the week at a new record high, its first since mid-June. Maybe the S fund can join its TSP equity partners and make it a Record High Trifecta next week. As such, we are recommending no changes to the current allocation.
This week the S&P 500 recorded new highs on four straight days, including Fridays close at 4468. Tuesday's rally started when the Senate passed the $1 trillion infrastructure package which boosted economic growth stocks. July's Consumer Price Index (CPI) was released Wednesday and it showed prices jumping 5.4% since last year and 0.5% from the previous month. On Thursday we then had the Producer Price Index (PPI) rising 0.9% last month versus a forecast for a 0.5% gain. And on Friday, the University of Michigans consumer sentiment index preliminary August reading came in at 70.2, the weakest since December 2011 and below the April 2020 pandemic mark of 71.8. Given this backdrop, it really is noteworthy that the markets just kept plodding forward with each of the four record setting daily moves 0.3% or less. Looking back two weeks, the S&P 500 has made record highs on seven of the last nine trading days, with no daily moves greater than 0.82%. For TSP TIPS, that C fund has plodded along right in step with the S&P 500 and finished at a new high on Friday. Not to be outdone, the I fund also closed the week at a new record high, its first since mid-June. Maybe the S fund can join its TSP equity partners and make it a Record High Trifecta next week. As such, we are recommending no changes to the current allocation.