In a week of huge swings with the S&P 500 up 2.02% on Tuesday, and then doubling that to the downside with a 4.04% loss on Wednesday, the S&P 500 closed Friday at 3901 for its seventh straight losing week. Topping that, the Dow lost 2.9% for its first eight-week losing streak since 1923. At mid-week, Walmart and Targets back-to-back quarterly reports showed that higher fuel costs and lower than expected sales hurt overall results, with Target stock dropping about 24% on Wednesday alone. Also reported this week were home numbers, with the 30-year fixed mortgage now hovering around 5.45% and the median price of an existing home coming in at $391,200, the highest on record and an increase of 14.8% from a year ago. All this is being driven by fears that Federal Reserve rate hikes to fight inflation will tip the economy into a recession. From a technical perspective, Friday saw the S&P 500 falling as much as 2.3% in the morning. This was significant in that the S&P 500 posted a new 2022 intraday low, off 20.9% below its 3 January 2022 record close. While it did bounce back in the afternoon, that level may be tested again next week with Fed minutes and GDP numbers coming. For TSP TIPS, we are recommending no changes to our current allocation. Additionally, this week well be seeing the TSP suspending trading from 26 May to the first week of June. Making this time a little more palatable, Monday, 30 May is Memorial Day and the markets will be closed. Given current market conditions and investor sentiment, our allocation looks good going into that suspension period. BREAKING NEWS: We will be holding a TSP TIPS: Investment Strategies Zoom call on 24 May at 5 pm EDT. Register on Eventbrite by searching on the above title. The call will be recorded and posted on You Tube in case you cant be there on the 24th. Lastly, the direct registration link is https://www.eventbrite.com/e/tsp-tips-investment-strategies-registration-329788214427
In a week of huge swings with the S&P 500 up 2.02% on Tuesday, and then doubling that to the downside with a 4.04% loss on Wednesday, the S&P 500 closed Friday at 3901 for its seventh straight losing week. Topping that, the Dow lost 2.9% for its first eight-week losing streak since 1923. At mid-week, Walmart and Targets back-to-back quarterly reports showed that higher fuel costs and lower than expected sales hurt overall results, with Target stock dropping about 24% on Wednesday alone. Also reported this week were home numbers, with the 30-year fixed mortgage now hovering around 5.45% and the median price of an existing home coming in at $391,200, the highest on record and an increase of 14.8% from a year ago. All this is being driven by fears that Federal Reserve rate hikes to fight inflation will tip the economy into a recession. From a technical perspective, Friday saw the S&P 500 falling as much as 2.3% in the morning. This was significant in that the S&P 500 posted a new 2022 intraday low, off 20.9% below its 3 January 2022 record close. While it did bounce back in the afternoon, that level may be tested again next week with Fed minutes and GDP numbers coming. For TSP TIPS, we are recommending no changes to our current allocation. Additionally, this week well be seeing the TSP suspending trading from 26 May to the first week of June. Making this time a little more palatable, Monday, 30 May is Memorial Day and the markets will be closed. Given current market conditions and investor sentiment, our allocation looks good going into that suspension period. BREAKING NEWS: We will be holding a TSP TIPS: Investment Strategies Zoom call on 24 May at 5 pm EDT. Register on Eventbrite by searching on the above title. The call will be recorded and posted on You Tube in case you cant be there on the 24th. Lastly, the direct registration link is https://www.eventbrite.com/e/tsp-tips-investment-strategies-registration-329788214427