The S&P 500 had a consolidation week as it bounced around the 4500 level, finishing the week down at 4488. On Wednesday the Fed released March minutes which showed plans to reduce bond holdings around $95 billion/month and making a stronger case for one or more 50 basis-point interest rate hikes. In the last two hours of trading after that release, the market packed numerous major gyrations which kept investors on edge. Thursday brought us an initial jobless claims number of 166,000, the lowest level in more than 53 years dating back to November 1968. As a result of those afore mentioned FOMC minutes, Friday saw the 10-year Treasury yield hitting a new three-year high of over 2.7%. On the technical side, the S&P 500 has become range bound over the last three weeks between 4424 and 4637. With earnings season fast approaching, hopefully good numbers will result in a breakout to the upside. For TSP TIPS, that range bound consolidation echoes the sentiment of the last three weeks and no reallocation is recommended. We also received some initial information regarding the May release of the TSP Mutual Fund Window. Costs are $150 in annual administrative/maintenance fees and $28.75/trade. Also, your initial investment must be at least $10,000, and you may not invest more than 25% of your total. Conversely, Fidelity (or Schwab) have Windows type accounts with no fees, $0 commission trades, and no minimums to open an account. That said, it might appear that the TSP Window would be utilized for someone that would like to invest in a specialty and/or sector fund with minimal transactions. In closing, well pass along more information as we get it.
The S&P 500 had a consolidation week as it bounced around the 4500 level, finishing the week down at 4488. On Wednesday the Fed released March minutes which showed plans to reduce bond holdings around $95 billion/month and making a stronger case for one or more 50 basis-point interest rate hikes. In the last two hours of trading after that release, the market packed numerous major gyrations which kept investors on edge. Thursday brought us an initial jobless claims number of 166,000, the lowest level in more than 53 years dating back to November 1968. As a result of those afore mentioned FOMC minutes, Friday saw the 10-year Treasury yield hitting a new three-year high of over 2.7%. On the technical side, the S&P 500 has become range bound over the last three weeks between 4424 and 4637. With earnings season fast approaching, hopefully good numbers will result in a breakout to the upside. For TSP TIPS, that range bound consolidation echoes the sentiment of the last three weeks and no reallocation is recommended. We also received some initial information regarding the May release of the TSP Mutual Fund Window. Costs are $150 in annual administrative/maintenance fees and $28.75/trade. Also, your initial investment must be at least $10,000, and you may not invest more than 25% of your total. Conversely, Fidelity (or Schwab) have Windows type accounts with no fees, $0 commission trades, and no minimums to open an account. That said, it might appear that the TSP Window would be utilized for someone that would like to invest in a specialty and/or sector fund with minimal transactions. In closing, well pass along more information as we get it.