An surge in bond yields shook markets up this week increasing volatility and pushing stock and bond prices down. The normally 'safe' investment into bonds (F-fund) was down simultaneously with more risky investments like stocks (C, S, and I-Fund). Well then where are people putting their cash? The answer isn't obvious and the answer may just include more cash holdings. This could be the case as a change in market character has investors reevaluating the best place for their money.
We saw another week of stocks moving without conviction and eventually ending with a mixed results across the TSP funds. U.S. stocks took a breather this week which was welcomed by those who still believe stimulus and a recovering economy will keep stock price rising. The bears did have some life this week but there wasn't any selling that didn't get bought up by dip buyers soon after. The S&P 500 was on its way to wipe out the week's losses before sliding for the later part of Friday's action.
A week full of 'choppy' actions ends with a late rally to put stocks at new all time highs. Friday was the S&P 500's 10th record close in 2021. For most of the week we saw a lack on conviction in stock gains. Jerome Powell did his best to reassure investors that monetary stimulus and low rates will not go away anytime soon. Still the market couldn't decide on a direction throughout the week and it was a late rally following a mid-day pull back to push the indices to new highs.
It
Stocks were up everyday this week, large and small caps produced new all time highs, and collectively we saw stocks best week since early November. More fiscal stimulus is being put together by the Federal government and though the details may take time to be worked out, investors love to be coaxed by its possibility. So with more free money in the works, bad news becomes good news again. The gains Friday weren't outlandish especially with the momentum leading up to Friday, but they were on the
We've been wondering for months what was capable of shaking this relentless upside in stock indices; it turned out to be amateur investors forcing the hand of hedge fund short positions. It was a very interesting development this week and will have its own consequences in some form; but it was a small drop in a big bucket. What it did do is distract from earnings reports and the status quo trading regimens to shed off more than 3 or 4 percent in the indices in just three days.
To those
|
SPY (C Fund) (delayed) (Stockcharts.com Real-time) |
DWCPF (S Fund) (delayed) (Stockcharts.com Real-time) |
EFA (I Fund) (delayed) (Stockcharts.com Real-time) |
BND (F Fund) (delayed) (Stockcharts.com Real-time) |
||
|
Yahoo Finance Realtime TSP Fund Tracking Index Quotes |
|||||
Find latest posts
View Articles
View Blog Entries
