Good Evening, The market underwent a second day of consolidation as it waited for the conclusion of the Fed meeting tomorrow. It is widely thought that their will be another quarter point interest rate hike. I believe that has already been priced in although I also expect that you will see a jump in financial stocks if the expected rate hike indeed takes place. Lets take a look at the market moving into the New Year. There are three market moving events that will either be a boost or a drag on the market depending on how they turn out. We have already mentioned the first which is the expected quarter point interest rate increase that should occur tomorrow. If anything more or less than the anticipated amount is announced it will more than likely have a negative effect on the market. The second is an issue that you may not have thought about and that is the special Senate election that is occurring in Alabama. Folks, I want to make one thing clear. I only comment on politics as it effects the market. With the exception of that I’ll keep my personal opinions to myself. Anyway, the market views a defeat of controversial Republican Candidate Judge Roy Moore as a negative. The reason for that is that the whole rally of the past 12 months has been based on speculation that legislation will be passed including a corporate tax cut. If Roy Moore is in fact defeated the Republicans will lose a seat in the Senate which will make it more difficult to pass a tax reform bill. We have already seen how big one vote can be with regard to passing legislation in the Senate. The third third thing of course if the Tax Legislation itself. If legislation including a corporate tax cut fails to pass look for the market to give up a good portion or maybe even all the gains it has made in the past twelve months. Either way, God is still on the throne and I will continue to trust in Him!

The days trading left us with the following results: Our TSP allotment dropped -0.25%. For comparison, the Dow gained +0.49%, the Nasdaq lost -0.19%, and the S&P 500 added +0.15%.

The days action left us with the following signals: C-Buy, S-Neutral, I-Buy, F-Neutral. We are currently invested at 100/S. Our allocation is now +18.08% 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  KyFan1@aol.com.