It was a somewhat muted week on Wall Street as the S&P 500 closed at 3965, down just 13 points from Mondays open. The FTX debacle took top billing in the headlines, but it was also a week of Fedspeak as St. Louis Federal Reserve President James Bullard suggested that the federal funds rate could be in the 5% to 7% range. On the housing front, October sales of previously owned homes fell for the ninth consecutive month and were down 28.4% year over year. But the good news is that the 30-year fixed mortgage rate fell to 6.61% from 7.08%, the largest weekly decline since 1981. On the technical front, a streak was broken. Since Black Friday after last years Thanksgiving, every week has had a least one daily move of over 1%. Additionally, in 2022 weve now had 110 daily moves of over one percent, surpassing the pandemic 2020 full year mark of 108. And with 56 up and 54 down daily moves, it illustrates the whipsaw effect that has characterized the 2020 market. The only big news next week will be the FOMC minutes on Wednesday, and we wish everyone a very Happy Thanksgiving!! For TSP TIPS, it was a positive week and the I fund was the first of the three equity funds (C/S/I) to cross above its 200 day moving average. As such, we recommend no changes in our current allocation.
It was a somewhat muted week on Wall Street as the S&P 500 closed at 3965, down just 13 points from Mondays open. The FTX debacle took top billing in the headlines, but it was also a week of Fedspeak as St. Louis Federal Reserve President James Bullard suggested that the federal funds rate could be in the 5% to 7% range. On the housing front, October sales of previously owned homes fell for the ninth consecutive month and were down 28.4% year over year. But the good news is that the 30-year fixed mortgage rate fell to 6.61% from 7.08%, the largest weekly decline since 1981. On the technical front, a streak was broken. Since Black Friday after last years Thanksgiving, every week has had a least one daily move of over 1%. Additionally, in 2022 weve now had 110 daily moves of over one percent, surpassing the pandemic 2020 full year mark of 108. And with 56 up and 54 down daily moves, it illustrates the whipsaw effect that has characterized the 2020 market. The only big news next week will be the FOMC minutes on Wednesday, and we wish everyone a very Happy Thanksgiving!! For TSP TIPS, it was a positive week and the I fund was the first of the three equity funds (C/S/I) to cross above its 200 day moving average. As such, we recommend no changes in our current allocation.