This week, the C-fund (S&P 500) produced its first new high since January 3rd, 2022. In the meantime, the C-fund took a turbulent 24% loss up to October 12th, 2022 followed by a 34% bounce back to its price today.
The latest Consumer Price Index and the Federal Reserve helped to push prices to new highs. The CPI showed investors inflation in maintaining its current lower levels. The CPI's yearly 3% year-over-year increase is still higher than the FOMC's goal of 2%, but it shows an inflation environment where the FOMC can start to consider cutting rates.
The Fed gave investors their satisfaction on Wednesday when they voted unanimously to keep rates steady and are likely shifting towards cutting rates mid-2024.
In response, many of the top 2023 performers have shifted back into stocks. Particularly their old friend the S-fund.
They led a horde of other TSP Talk AutoTracker members who were also bold enough to buy into stock as they reached their all-time highs.
But the underinvested are starting to fear missing out on more of this Santa season rally.
Learn how to start your TSP Talk AutoTracker account here.
How to use TSP Talk like a Pro.
Here are the weekly, monthly, and annual TSP fund returns for the week ending December 15:
The S-fund may be picking up popularity because of its latest outperformance over the other TSP funds. The S-fund rose 5% over the week on its way to test the prices of some peaks from mid-2022. Investors are considering the fund because it has some catching up to do, and thus more room to grow. The G-fund still holds the crown of most held fund in the TSP Talk AutoTracker with its average allocation of 36%, but the S-fund is not far behind at 31%.
In the short term, the S-fund is even outperforming itself. This is of course unsustainable and will get more unstable if kept unchecked through December. Any pullback in the coming week will spark some new buyers who are looking for an attractive entry price before the holiday.
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 TSP Talk - Market Commentary. If you need some help deciding what to do with your account, perhaps one of our premium services can help.
Thomas Crowley
(TommyIV)
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.
