Good Evening, It was an interesting market today. It’s character definitely underwent a change. However, please note that if was not a change where the market was topping nor was it a change where there was a rally from an influx of new money. No sir, the market didn’t really change in value. It simply underwent one of the most drastic sector rotations that I can remember. If you are investing on the street it is important to know exactly what is going on. Not so much though, if your investing in index funds as we are in TSP. Nonetheless it is interesting so I will briefly comment on it. First of all there was heavy profit taking (did I say heavy?) in the tech sector. The Nasdaq got slaughtered losing a whopping -1.27% while the Dow actually managed a moderate gain. So why did this happen? Investors who where sitting on big profits in tech took those profits and redeployed them into areas that would benefit from tax reform and current developments in the Federal Reserve. First, they were putting money into domestic stocks that would benefit from tax relief such as the retail and industrial sectors.  They especially put money into anything domestic that was classified as a small or mid cap stock and that folks is exactly why we are invested with 100% in the S Fund. Second, they put money into the beaten down financial sector for a couple of reasons. The new Fed Chair nominee is in favor of relaxing regulations on financial institutions and speculation that the Fed will almost certainly increase interest rates next month both of which will be great for financials. There you have it. Money rotated out of tech and into domestic industrial, retail, and financial stocks. In short, the leadership is changing but the trend is not. It is still up!

The days trading left us with the following results: Our TSP allotment eked out a small gain of +0.05%. For comparison, the Dow was up +0.44%, the Nasdaq lost -1.27%, and the S&P 500 dropped -0.04%.

The days action left us with the following signals: C-Buy, S-Buy, I-Buy, F-Neutral. We are currently invested at 100/S. Our allocation is now +18.24% 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].