TSP Market Summary: Week of November 26, 2022
Key Takeaways
- S&P 500 surged above 4,000 as 10-year Treasury yields dropped from 4.33% to 3.69%
- Fed minutes suggest slower pace of rate hikes after four consecutive 0.75% increases
- November jobs report on Friday will be key market driver for TSP funds next week
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date. For current recommendations, subscribe.
| G Fund | F Fund | C Fund | S Fund | I Fund |
|---|---|---|---|---|
| 0% | 15% | 30% | 20% | 35% |
In this holiday shortened week the S&P 500 had a positive week, closing at 4026 on Friday. Overall, the markets seemed to become more bullish as bond yields have come off recent highs. For instance, this year the 10 year Treasury yield topped out at 4.33% on 21 October. On Friday, it closed at 3.69%. On the Fed front, after four hikes of 0.75%, Wednesdays FOMC minutes showed that the central bank anticipates slowing this pace. I guess well find out for sure after their 13 and 14 December meeting. That said, the S&P 500 seems to be moving in the opposite direction of those 10 year yields. On 13 October the S&P 500 hit a new 2022 intraday low of 3491. With the S&P 500 now closing above that psychological 4,000 level, weve had a nice rebound. Next week the big event will be Fridays November employment report. For TSP TIPS, were seeing a slight rotation in the equity funds (C/S/I) Performance Rankings and therefore are recommending the following investment mix.