Good Evening, The Fed put pushed the pause button on the rally today when they indicated that a fourth rate hike is possible in 2018. They pointed out in the report and subsequent news conference that labor markets, economic activity and household spending are solid but there is still no indication of a surge in longer-term inflation. Nonetheless, the computer algorithms were programmed to sell and that’s what they did. There was nothing surprising about any of the news so the dip buyers stepped in and limited the damage before the closing bell. The key to keeping this rally going is the the economy must remain like Goldie Locks porridge. That is to say not to hot and not too cold but just right. That seems to be pretty much the deal as far as I can tell. One other thing about the Fed Statement this afternoon is that it abandoned some of the accommodating language that it has used since the financial crisis. Of course as you might imagine, investors dissect ever word of the statement and trade off of even the most subtle change. No doubt more than a few of them took some profits on this change. All that said, I feel like the market will digest this news and move on. I personally won’t get too worried until #1 there is notable inflation and #2 corporate earnings which are very good right now start to slack off. As far as I’m concerned it’s still hammer down……

The days trading left us with the following results: Our TSP allotment dropped -0.42%. For comparison, the Dow lost -0.47%, the Nasdaq -0.11%, and the S&P 500 -0.40%.

The days action left us with the following signals: C-Buy, S-Buy, I-Neutral, F-Sell. We are currently invested at 100/S. Our allocation is now +7.91% on the year not including the days results. Here are the latest posted results:

God bless, Scott 

 

 ***Just a reminder that you can review the performance of our allocation at the Web Site TSPTALK.com in the autotracker section under the screen name KyFan1.

 

 

I produce and publish this blog as both a ministry and for the benefit of any Federal Government Employee. This is done to offer you some guidance as to how to approach your retirement more financially successful. When it is time for you to retire, I recommend you utilize the services of a Professional Money Manager, who works with a reputable investment firm. He understands the guidance you have already received and he can manage your savings assets utilizing a more advanced investment program into the future. 

 

If you would like to receive more information about this introduction, please feel free to contact me at  [email protected].