There was mixed action this week among the stock indices. Small caps (S-fund) added .7% while large cap stock indices were down nearly 1%. Public offerings shook up the status quo this week so rotation separated the strength but kept the money within stocks. There was also concern about the stimulus package out of Washington. It seems the two parties can't completely agree on where the money should go which keeps the money out of everyone's hands at the moment. There was also a slight increase in jobless claims than expected but really that puts pressure on congress to get that money moving.
Bonds were in positive territory with small caps this week. Investors focused on the lack of trade deal between the U.K. and the E.U. moved their money to U.S. Treasury bonds. A deadline approaches for a deal and there are too many differences that have not been settled. A failure to make a deal would be a major threat to that large of an economy.
The public offerings shook up the markets a bit this week so its hard to say if this was a hiccup in large cap growth or the beginning of correction. Seasonal trends are in stocks favor but even in recent years we know that is not always a sure buy for stocks.
Here are the weekly, monthly, and annual TSP fund returns for the week ending December 11:
The SPY (S&P 500 / C-fund) spent some hours in positive territory for the week but slipped the last three days of trading as money moved to the new shiny IPO's and small cap names. The C-fund lost 0.95% to under perform the TSP funds. The index did stay within a trading range where it found support Friday and matched support from its 20-day EMA. The prolonged deal on stimulus from the government has to have on effect on investor willingness to bet on stocks already at their highs. But like times before, the extension of the deal keeps the buyer looking forward.
The Dow Completion Index (S-fund) outperformed the large cap names with gains against losses. The S-fund has been a bit more shifty in its action but it remains the leader of the pack. A 0.7% gain this week gives it a 3.88% gain for the first couple weeks of December.
EFA (EAFE Index / I-fund) pulled back this week from its steady climb of nearly a month. The index may have broken the support of the rising trading channel but established a low for the week early on and kept that support. A little weakness is peeking through this index at this point but for now the action has 'flattened' its trading range. The I-fund fell 0.52% for the week.
BND (Bonds / F-fund) spent most of the week in positive territory. Investors overall found a haven in bonds while the lack of a trade deal between the U.K. and the E.U. poses a threat to a large economy. The gains from the matter were not straight up but is keeping BND above its 50-day EMA and near it higher range in its trading channel of the last three months. The F-fund gained 0.34% for the week although it is still down 0.13% from its November high. Nobody invest in bonds for their explosive growth but rather for their resistance to volatility.
Good luck and thanks for reading. We will be back here next week with another TSP Wrap Up. You can read our daily market commentary at the Market Comments page. If you need more help deciding what to do with your account, perhaps one of our Premium Services can help.
Thomas A Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
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The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.
Bonds were in positive territory with small caps this week. Investors focused on the lack of trade deal between the U.K. and the E.U. moved their money to U.S. Treasury bonds. A deadline approaches for a deal and there are too many differences that have not been settled. A failure to make a deal would be a major threat to that large of an economy.
The public offerings shook up the markets a bit this week so its hard to say if this was a hiccup in large cap growth or the beginning of correction. Seasonal trends are in stocks favor but even in recent years we know that is not always a sure buy for stocks.
Here are the weekly, monthly, and annual TSP fund returns for the week ending December 11:
The SPY (S&P 500 / C-fund) spent some hours in positive territory for the week but slipped the last three days of trading as money moved to the new shiny IPO's and small cap names. The C-fund lost 0.95% to under perform the TSP funds. The index did stay within a trading range where it found support Friday and matched support from its 20-day EMA. The prolonged deal on stimulus from the government has to have on effect on investor willingness to bet on stocks already at their highs. But like times before, the extension of the deal keeps the buyer looking forward.
The Dow Completion Index (S-fund) outperformed the large cap names with gains against losses. The S-fund has been a bit more shifty in its action but it remains the leader of the pack. A 0.7% gain this week gives it a 3.88% gain for the first couple weeks of December.
EFA (EAFE Index / I-fund) pulled back this week from its steady climb of nearly a month. The index may have broken the support of the rising trading channel but established a low for the week early on and kept that support. A little weakness is peeking through this index at this point but for now the action has 'flattened' its trading range. The I-fund fell 0.52% for the week.
BND (Bonds / F-fund) spent most of the week in positive territory. Investors overall found a haven in bonds while the lack of a trade deal between the U.K. and the E.U. poses a threat to a large economy. The gains from the matter were not straight up but is keeping BND above its 50-day EMA and near it higher range in its trading channel of the last three months. The F-fund gained 0.34% for the week although it is still down 0.13% from its November high. Nobody invest in bonds for their explosive growth but rather for their resistance to volatility.
Good luck and thanks for reading. We will be back here next week with another TSP Wrap Up. You can read our daily market commentary at the Market Comments page. If you need more help deciding what to do with your account, perhaps one of our Premium Services can help.
Thomas A Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
Facebook | Twitter
The legal stuff: This information is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this data. Do not buy, sell or trade the funds mentioned herein based on this information. We may trade these funds differently than discussed above. We use additional methods and strategies to determine fund positions.
