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TSP Talk Weekly Wrap Up

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It was a relatively un-lively week for stock in a year of great proportions. Large caps only saw gains two of the five days this week, but Monday's gains were enough to keep them in positive territory. Small caps did not have the same benefit and Friday's loss pushed into negative territory for the week.

This week wrapped up 2021's market and it was quite a year. Below I'll give a chart of each fund's respective action this year. The C-fund outperformed by more than double the S and I-fund's while the F-fund ended its year with a loss.

A new year could mean new market action, but the same concerns will persist for now; inflation and covid-19. The market is not likely to enjoy the monetary tightening by the Federal Reserve but as long as the Fed doesn't surprise the market there shouldn't be a major problem.

Thanks for reading and I really appreciate everyone who takes the time to read this free blog. I hope it is useful in your investment decision making. See you next week or on Monday if you're subscribed to the Last Look Report. Happy New Year!

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

The SPY (S&P 500 / C-fund) established most of its gain this week on Monday's continuation of the previous week's rally. Action tightened up to end the week but the index did produce its 70th record high of 2021 on Wednesday. The C-fund lost a little more than a quarter percent both on Thursday and Friday to come off its highs but still was able to produce a 0.87% return for the week.

The C-fund was the outstanding fund of the year with a gain of 28.68%. This yearly return was more than double the S-fund's year return. The only real time of concern for this index came in September with its strongest pull back; the rebound was strong in the second half of October to keep the new highs coming up to the last week of the year. 2021's return outpaced the 2020 return of 18.31%. How much longer can the bull run continue?

The Dow Completion Index (S-fund) ran into resistance this week formed by a few moving averages as seen in the chart below. This led the index to lag large caps this week and actually slip 0.08% for the week after a 0.39% loss on Friday.

The S-fund reached its final high for the year in the first half of November before falling into correction territory where it has remained through December. The index did produce a gain of 0.58% in December and finished the year with a 12.45% return; this is a great return for an index if it isn't compared to the S&P 500's return.

EFA (EAFE Index / I-fund) outperformed the TSP funds for the week with a 0.95% gain. The ETF did come off its highs set early in the week but maintained most of the gains produced on Monday. The index starts the new year above its 20, 50, and 200-day EMAs.

The I-fund produced its last high in early September. Since then, it has lost its momentum and has collided with its 200-day EMA in the last quarter of 2021. After spending some time below its 200-day EMA in early December, the ETF has bounced back to reclaim some losses from the second half of November. The I-fund lagged the TSP stock funds for the year with an 11.45% gain for 2021.

BND (Bonds / F-fund) were up 0.09% for the week and did come off the lows but has its moving averages acting as resistance. Action was tight in the second half of December.

Bonds say some fluctuations this year but remain relatively tight in the last quarter which you can notice by the confluence of its 20, 50, and 200-day EMAs late in the year. The F-fund lagged the TSP funds for the year with a loss of 1.46%. The ETF did establish a low in March that it was up from to end the year but peaked at the beginning of August.

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
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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)

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BND (F Fund) (delayed)

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Yahoo Finance Realtime TSP Fund Tracking Index Quotes