It was another volatile week on Wall Street with the S&P 500 again having three days of daily moves greater than 1%, but up for the week closing at 3,916. Also being carried over from last week was the spreading of bank failures globally. This week First Republic was down nearly 72%, while Credit Suisse lost 24%. Not to be outdone, the energy sector had a worse week than the financial sector, losing about 7%. All told, just four of the S&P 500 indexs 11 sectors posted losses this week. On the flip side, the tech sector had one of its best weeks in quite a while as Alphabet (Google) and Meta (Facebook) had gains of more than 12% and 10%, respectively. Overshadowed by this sector rotation, both the inflation reports were encouraging as annual CPI came in 6.0%, the lowest since September of 2021, and monthly PPI went down 0.1% in February, against market expectations of a 0.3% increase. From a technical perspective, the S&P 500 has had four down weeks out of the last six, and we saw its 20 day Moving Average (MA) dip below its 50 MA. For next week the big news is Wednesdays Fed interest rate decision. For TSP TIPS, the C fund mirrored the S&P 500 and had its 20 MA dip below its 50 MA. Both the S and I funds marched in step with both having their 20 MAs cross below their 50 MAs. As such, we are recommending the following new investment mix.
It was another volatile week on Wall Street with the S&P 500 again having three days of daily moves greater than 1%, but up for the week closing at 3,916. Also being carried over from last week was the spreading of bank failures globally. This week First Republic was down nearly 72%, while Credit Suisse lost 24%. Not to be outdone, the energy sector had a worse week than the financial sector, losing about 7%. All told, just four of the S&P 500 indexs 11 sectors posted losses this week. On the flip side, the tech sector had one of its best weeks in quite a while as Alphabet (Google) and Meta (Facebook) had gains of more than 12% and 10%, respectively. Overshadowed by this sector rotation, both the inflation reports were encouraging as annual CPI came in 6.0%, the lowest since September of 2021, and monthly PPI went down 0.1% in February, against market expectations of a 0.3% increase. From a technical perspective, the S&P 500 has had four down weeks out of the last six, and we saw its 20 day Moving Average (MA) dip below its 50 MA. For next week the big news is Wednesdays Fed interest rate decision. For TSP TIPS, the C fund mirrored the S&P 500 and had its 20 MA dip below its 50 MA. Both the S and I funds marched in step with both having their 20 MAs cross below their 50 MAs. As such, we are recommending the following new investment mix.