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TSP Talk Weekly Wrap Up

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The year ends on a high note for large caps while small caps show some weakness. The last week of the year carries light volume with it which can bring volatile and less predictable trading with a fraction of moves carrying the markets. The S&P 500 began the week with gains but had choppy behavior through the week. This includes a spike rally in the last couple hours of trading Thursday which put the index at a new all time high to end the year. Small caps have been a leader in the indices for the last couple week but this week the S-fund was the sole loser of the TSP funds.

Despite the great year in stocks during a global pandemic, a lot of investors have high hopes for 2021. A major driver for the speculation is expectations of a global recovery in the new year. Vaccines are making their way to the public which brings potential opportunity for sectors that struggled outside of tech in 2020. Investors also imagine another great year for 2021 for the obvious reason; they love easy gains. Stocks have moved into dot com era gains over the last couple years and those who were in stocks and those who missed out will share the wishful thinking of the easy ride continuing.

Everyone's investing style is different and depends on one's own character and where one is in life financially. But we share a goal here at TSP Talk to maximize our gain potential that fits with our capacity for risk. So with that, I wish you the best year and a giant step towards your financial goals.

Next weeks spotlight will be on the Georgia election and beyond that is the fourth quarter earnings to spark some moves.




Here are the weekly, monthly, and annual TSP fund returns for the week ending December 31:




The SPY (S&P 500 / C-fund) gapped up Monday and chopped around above that open gap for the rest of the short week. The last couple hours of Thursday's trading put the index at an new all time high. The C-fund was up 1.45% for the week to outperform the other TSP funds.




The Dow Completion Index (S-fund) slipped below the support line of the nearly two month old rising trading channel. The was recovery off the lows of Tuesday but the index remained in negative territory and has not tested the trend line for resistance. The lost hope of a stimulus increase to $2000 from $600 lost hope Tuesday. This may have sparked selling in small caps that may have priced in the spending power of the consumer. The S-fund lagged the TSP funds with a loss of 1.69% for the week. The only loss in the TSP funds for the week. Nonetheless the S-fund outperformed the TSP funds for the year with an impressive 31.85% gain.




EFA (EAFE Index / I-fund) was outperforming for the week but gave back some gains Thursday. The loss put the index below both trend lines that had been support. The I-fund was just behind the C-fund with a gain of 1.43% for the week.




BND (Bonds / F-fund) added gains this week and the moved beyond its November high Thursday. It ended the week at the bottom of the open gap produced in August. The index was able to sustain gains in December unlike the four months prior. This could be a good sign moving forward but don't be surprised if the action flattens out again. The F-fund was up 0.22% 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
www.tsptalk.com
Weekly Wrap-Ups Archive
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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.

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S&P500 (C Fund) (delayed)

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DWCPF (S Fund) (delayed)

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EFA (I Fund) (delayed)

(Stockcharts.com Real-time)
BND (F Fund) (delayed)

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Yahoo Finance Realtime TSP Fund Tracking Index Quotes