The S&P 500 had its best month since November 2020 and closed out October at a new record high of 4605. Reported earnings were the main market driver this week and with half of the S&P 500 companies reporting, 80% have beat earnings estimates. The week started off with a bang when Tesla gained 12.66% on Monday, increasing Elon Musks personal wealth by $36.2 billion (yes billion) in one day. On Thursday the GDP report showed a 2% growth rate in the third quarter, its slowest of the pandemic-era, and the S&P 500 made a new record high. On Friday, both Amazon and Apple reported earnings under expectations, and the S&P 500 made a new record high. From a technical perspective, we continue to Let the trend be our friend. The S&P 500 set new record highs 4 times this week and 5 of the last 7 trading days. Next week we have two big events with the Fed meeting mid-week and Fridays employment report. Looking towards year end, it would be nice if we had a November and December like last year. In 2020 the S&P 500 made 11 new record highs and gained just shy of 15%. It sure would be nice if history repeats itself in the last two months of 2021. For TSP TIPS, the C fund mirrored the S&P 500 and also set four new records this week. The S fund hit a new high on Monday but remains within one percent. As such, we recommend no allocation changes as we head into November.
The S&P 500 had its best month since November 2020 and closed out October at a new record high of 4605. Reported earnings were the main market driver this week and with half of the S&P 500 companies reporting, 80% have beat earnings estimates. The week started off with a bang when Tesla gained 12.66% on Monday, increasing Elon Musks personal wealth by $36.2 billion (yes billion) in one day. On Thursday the GDP report showed a 2% growth rate in the third quarter, its slowest of the pandemic-era, and the S&P 500 made a new record high. On Friday, both Amazon and Apple reported earnings under expectations, and the S&P 500 made a new record high. From a technical perspective, we continue to Let the trend be our friend. The S&P 500 set new record highs 4 times this week and 5 of the last 7 trading days. Next week we have two big events with the Fed meeting mid-week and Fridays employment report. Looking towards year end, it would be nice if we had a November and December like last year. In 2020 the S&P 500 made 11 new record highs and gained just shy of 15%. It sure would be nice if history repeats itself in the last two months of 2021. For TSP TIPS, the C fund mirrored the S&P 500 and also set four new records this week. The S fund hit a new high on Monday but remains within one percent. As such, we recommend no allocation changes as we head into November.