TommyIV's TSP Talk Blog

The S&P 500 was down four of the five days this week yet that one day of gains was enough to carry the C-fund into positive territory (+0.38%) for the week. Small caps had a different week, the DWCPF was up four of the five days this week. The index was able to stay in positive territory on days large caps saw losses. The boosted the S-fund to outperform the TSP funds with a 2.38% gain for the week. Yet another different performance was the I-fund that jumped between gains and losses to ultimately end the week nearly down 1%.

It was a fresh start to a new month this week and the action was inconsistent and choppy. There was some geopolitical tension for investors to worry about with Nancy Pelosi's controversial visit to Taiwan. Earnings on Wednesday boosted stock prices to climb out of an early hole. But it was the July Jobs Report that came out Friday that stole the show. The jobs added in the report were around double expectations. Not what investors were expecting with the Federal Reserve consecutively raising rates for months. Buyers drove prices higher in July after it seemed Jerome Powell was signaling a slowdown in the rate hikes. Well the hawkish cries of other Fed members coupled with the strong jobs report put an end to that idea. But despite the news the losses were kept to a minimum in the S&P 500 and the DWCPF (S-fund) was even up on the day.

Investors won't see another FOMC meeting until September so they will have plenty of time this month to loom over the possibilities. The next such opportunity will come on Wednesday with the release of the latest Consumer Price Index. Is inflation actually pulling back? This CPI release will be a very important indicator of the effectiveness of the Fed's efforts.

Bonds were down more than 1% this week to lag the TSP funds. The bond market has experienced higher than typical volatility.

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Here are the weekly, monthly, and annual TSP fund returns for the week ending August 5:




SPY (S&P 500 / C-fund) saw its gains come Wednesday but it was the 200-day EMA to act as resistance and mark the high for the week. But there was some support too, seen as the dotted line below, that kept the losses late in the week from getting too deep and allowing the C-fund to hold onto some of those Wednesday gains. The C-fund ended the week up 0.38%.




The Dow Completion Index (S-fund) did not have the 200-day to intersect with and that could have abled the S-fund to significantly outperform this week. The highs of June will be the next test of resistance for the S-fund. The S-fund was up 2.38% for the week, 2% higher than the C-fund on the week.




EFA's (EAFE Index / I-fund) reached its high on Monday to reach to the top of the open gap left behind from early June. But that would be followed with a loss Tuesday that would put the I-fund down for the week. The ETF price showed life again but a 0.76% loss on Friday solidified the losses for the week. The I-fund lagged the TSP stocks funds with a loss of 0.91% through the week.





BND (Bonds / F-fund) was volatile with stocks but it was the losses Tuesday that kept the ETF in negative territory for the week. A gap down following the July Jobs Report pushed the EFT back near its 50-day EMA. The price now sits between two open gaps, one from mid-July and the one produced on Friday. The F-fund lagged the TSP funds with a loss of 1.02%




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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