A spike in oil prices to start instantly brought stock prices into negative territory for the week. Monday's losses amounted to be the worst single day action in the S&P 500 in over a year. But a rally Wednesday made headlines of its own with the biggest single day gains in indices since March 2020. Of course the action didn't stop there; Wednesday's prolific gains were a perfect opportunity for those exposed to Monday's sell-off to exit stocks. The indices were down the next two days and the C and S-funds were both down more than 2% for the week. Despite the turbulent month for the I-fund, it came out of this week with just a 0.27% loss. The F-fund was down 1.75% as its chart troubles continue.
The big news this week was President Biden banning the purchase of Russian oil. Not the easiest decision when inflation is a problem in the United States and Russian oil is a big supplier. This next week is the FOMC meeting where a rate hike is imminent. Given the conditions and uncertainty of the Ukraine-Russia conflict, investors will also be looking to whether the Fed plans to move forward with consecutive rate hikes that had been suggested by members of the Federal Reserve prior to Russia's invasion. For this meeting the committee is expected to raise rates by 0.25%. That will come on Wednesday.
Stocks have been trending down all year and everyone is wondering where the bottom will be. Wishful thinkers saw this week's action from big losses to a large rally to be a sign the stock buyers are gaining some traction. There are some obvious set backs that are keeping prices down and continuing to drop. Yet at the same time the U.S. economy remains strong and stable despite the rise in costs. Earnings season may change the sentiment about the war and the hawkish Federal Reserve.
Looking for an edge on your TSP return? Get the Last Look Report for as low as $4.19 / month. The report is a daily email on the TSP AutoTracker moves, news, forum threads, and more before the IFT deadline. The service is aimed to help you make your own IFT decisions by giving you relative information 30 min prior to the deadline including where the members of TSP Talk are moving their money.
Here are the weekly, monthly, and annual TSP fund returns for the week ending March 11:
The price swings this week for SPY (S&P 500 / C-fund) were back and forth over the low established at the beginning of October. It was a losing battle for the bulls by the end of the week. The ETF didn't end the week at its lows but could not finish at least above the October low. The trend is down and volatility is high. The C-fund lagged the TSP funds this week with a loss of 2.85%. The fund was down 3.65% for the week after Tuesday, but was down just 1.16% for the week after Wednesday.
The Dow Completion Index (S-fund) started the week down 3.6% after Monday's action. However the S-fund outperformed large caps for the rest of the week including a 3.33% gain Wednesday over the C-fund's 2.59% gain the same day. After Friday's down day the S-fund ended the week with a loss of 2.29%.
EFA (EAFE Index / I-fund) closed the open gap produced last week but came off those highs to give back the gains. The I-fund ended the week down just 0.27% this week to better fund outside the G-fund.
BND (Bonds / F-fund) continued its stuggles this week gapping down twice and the second time being at Thursday's open where the EFT fell deeper than the February lows. The F-fund was down 1.75% for the week.
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
wwww.tsptalk.com
Last Look Report
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.
The big news this week was President Biden banning the purchase of Russian oil. Not the easiest decision when inflation is a problem in the United States and Russian oil is a big supplier. This next week is the FOMC meeting where a rate hike is imminent. Given the conditions and uncertainty of the Ukraine-Russia conflict, investors will also be looking to whether the Fed plans to move forward with consecutive rate hikes that had been suggested by members of the Federal Reserve prior to Russia's invasion. For this meeting the committee is expected to raise rates by 0.25%. That will come on Wednesday.
Stocks have been trending down all year and everyone is wondering where the bottom will be. Wishful thinkers saw this week's action from big losses to a large rally to be a sign the stock buyers are gaining some traction. There are some obvious set backs that are keeping prices down and continuing to drop. Yet at the same time the U.S. economy remains strong and stable despite the rise in costs. Earnings season may change the sentiment about the war and the hawkish Federal Reserve.
Looking for an edge on your TSP return? Get the Last Look Report for as low as $4.19 / month. The report is a daily email on the TSP AutoTracker moves, news, forum threads, and more before the IFT deadline. The service is aimed to help you make your own IFT decisions by giving you relative information 30 min prior to the deadline including where the members of TSP Talk are moving their money.
Here are the weekly, monthly, and annual TSP fund returns for the week ending March 11:
The price swings this week for SPY (S&P 500 / C-fund) were back and forth over the low established at the beginning of October. It was a losing battle for the bulls by the end of the week. The ETF didn't end the week at its lows but could not finish at least above the October low. The trend is down and volatility is high. The C-fund lagged the TSP funds this week with a loss of 2.85%. The fund was down 3.65% for the week after Tuesday, but was down just 1.16% for the week after Wednesday.
The Dow Completion Index (S-fund) started the week down 3.6% after Monday's action. However the S-fund outperformed large caps for the rest of the week including a 3.33% gain Wednesday over the C-fund's 2.59% gain the same day. After Friday's down day the S-fund ended the week with a loss of 2.29%.
EFA (EAFE Index / I-fund) closed the open gap produced last week but came off those highs to give back the gains. The I-fund ended the week down just 0.27% this week to better fund outside the G-fund.
BND (Bonds / F-fund) continued its stuggles this week gapping down twice and the second time being at Thursday's open where the EFT fell deeper than the February lows. The F-fund was down 1.75% for the week.
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
wwww.tsptalk.com
Last Look Report
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.
