Q4 GDP beat expectations at 2.9%, showing economic resilience after mid-2022 contraction
I Fund leads TSP performance while S Fund shows bullish technical signal with MA crossover
Fed rate decision Wednesday could impact current equity-heavy allocation strategy
All major market indices finished the week higher with the S&P 500 closing at 4070. The biggest news this week was that 4th quarter GDP came in at 2.9% which was higher than expected. This was the second straight quarter of gains, reversing the first two quarters of 2022 losses. Additionally, earnings are coming in surprisingly strong with 69% of S&P 500 companies having positive Earnings Per Share (EPS) surprises, and 60% having positive revenue surprises. On the technical side the S&P 500 had two over 1% daily gains this week and closed at a new 2023 high, reinforcing its level above its 200 day Moving Average (MA). Next week we have more high profile companies reporting but the big news will come out of Wednesdays Fed Rate decision. For TSP TIPS, the I fund is still at the top of the Performance Ranking leaderboard and in as bullish move the S funds 20 day MA crossed above its 50 day MA. With the majority of TSP TIPS funds in equity (C/S/I), well maintain our current bullish allocation.
All major market indices finished the week higher with the S&P 500 closing at 4070. The biggest news this week was that 4th quarter GDP came in at 2.9% which was higher than expected. This was the second straight quarter of gains, reversing the first two quarters of 2022 losses. Additionally, earnings are coming in surprisingly strong with 69% of S&P 500 companies having positive Earnings Per Share (EPS) surprises, and 60% having positive revenue surprises. On the technical side the S&P 500 had two over 1% daily gains this week and closed at a new 2023 high, reinforcing its level above its 200 day Moving Average (MA). Next week we have more high profile companies reporting but the big news will come out of Wednesdays Fed Rate decision. For TSP TIPS, the I fund is still at the top of the Performance Ranking leaderboard and in as bullish move the S funds 20 day MA crossed above its 50 day MA. With the majority of TSP TIPS funds in equity (C/S/I), well maintain our current bullish allocation.