Similar to an earthquakes aftershocks, the S&P 500 saw daily moves of over 1% daily on Monday through Thursday. Two were up and two were down. Then, on Friday, the S&P 500 returned to normalcy and had a daily move under 1%. When all the gyrations were over, the S&P 500 closed the week down 1.2% at 4538. So again, whats next? Looking for similar instances, on 28 September of this year the S&P 500 lost just over 2%. The next trading day was calm, but over the next four days it also has four daily moves of over 1%, two up and two down. During that stretch, the S&P closed at a low of 4300 on 4 October, only two months ago. It then came back, gaining 4.4% and hitting a new record high 4549 on 21 October. That number is pretty close to Fridays close of 4538, and hopefully, like before, the worst of this current selloff is behind us. While no one can predict the future, it sure would be nice to see another 4.4% run to the upside and seeing the S&P 500 close at a new high of 4751 by Christmas. For TSP TIPS, the C fund continues to be the strongest based on its performance ranking. It remains just above its 50 day Moving Average (MA) also retains a hold rating on a shorter term set of MAs. As such, we recommend no allocation changes this week. Lastly, its getting that time to adjust your TSP contributions levels if you want them to take place with the start of the new year. For 2022 the annual election is $20,500 and the catch up is $6,500, a little higher than last year.
Similar to an earthquakes aftershocks, the S&P 500 saw daily moves of over 1% daily on Monday through Thursday. Two were up and two were down. Then, on Friday, the S&P 500 returned to normalcy and had a daily move under 1%. When all the gyrations were over, the S&P 500 closed the week down 1.2% at 4538. So again, whats next? Looking for similar instances, on 28 September of this year the S&P 500 lost just over 2%. The next trading day was calm, but over the next four days it also has four daily moves of over 1%, two up and two down. During that stretch, the S&P closed at a low of 4300 on 4 October, only two months ago. It then came back, gaining 4.4% and hitting a new record high 4549 on 21 October. That number is pretty close to Fridays close of 4538, and hopefully, like before, the worst of this current selloff is behind us. While no one can predict the future, it sure would be nice to see another 4.4% run to the upside and seeing the S&P 500 close at a new high of 4751 by Christmas. For TSP TIPS, the C fund continues to be the strongest based on its performance ranking. It remains just above its 50 day Moving Average (MA) also retains a hold rating on a shorter term set of MAs. As such, we recommend no allocation changes this week. Lastly, its getting that time to adjust your TSP contributions levels if you want them to take place with the start of the new year. For 2022 the annual election is $20,500 and the catch up is $6,500, a little higher than last year.