TSP Market Summary: Week of October 22, 2022

By Roy Weisert, PhD, CFP

Key Takeaways

  • S&P 500 broke five-week Friday losing streak with strong 1%+ gains on three days this week
  • C fund showed bullish reversal signal while F fund hit 52-week low as rates continued rising
  • IBM earnings beat may signal positive results for mega-cap tech stocks reporting next week

It was a good week on Wall Street as the S&P 500 closed up Friday at 3752. But what makes this Friday especially sweet is that we broke the streak. The previous five Fridays have been down, with the last four having daily losses of over one percent. But this Friday we had over a one percent gain, along with two other one percent gainers on Monday and Tuesday. This week we also had earnings season start ramping up. While TSLA missed expectations, Big Blue IBM did not. As such, IBM rallied 6% on Thursday through Friday. The reason we like this is because next week we have MSFT, GOOG, AMZN and APPL (which makes up ~7% of the S&P 500 market cap) reporting. And looking back to previous earnings announcements, if IBM does well, it usually bodes well for those Mega-Cap stocks. For TSP TIPS, all three equity funds (C/S/I) had bullish moves, while the F bond fund made a new 52 week low as interest rates continued to rise. For the C fund, it gave us good news with a textbook Two Bar Bull Reversal buy signal. For details go to You Tube, search on tsp tips trending investment portfolio strategies and advance to the 8:10 point. As such, we are making the following recommendation.

Recommended Allocation (Moderate Profile)

This is our historical recommendation from this date. For current recommendations, subscribe.

G FundF FundC FundS FundI Fund
70% 0% 30% 0% 0%