Thread: tsptalk's Market Talk

Tom, could you or someone else explain what is going on with the S-Fund? Usually it falls somewhere between the S&P and the Russell. Lately it has been lagging both. What part of the market does it track that could be responsible for this lag? As of 11am today, for example, the DWCPF is down 7.8% while the Russell is down 6.3% and the S&P is down 5.5%. I understand the S-Fund can be more volatile than the C-Fund, but I guess I am trying to understand why.

Many thanks!

Originally Posted by SoonerCaniac

Tom, could you or someone else explain what is going on with the S-Fund? Usually it falls somewhere between the S&P and the Russell. Lately it has been lagging both. What part of the market does it track that could be responsible for this lag? As of 11am today, for example, the DWCPF is down 7.8% while the Russell is down 6.3% and the S&P is down 5.5%. I understand the S-Fund can be more volatile than the C-Fund, but I guess I am trying to understand why.

Many thanks!

Not Tom but I think I have the answer for this. The S Fund tracks the Wilshire 4500, which I believe is 4500 companies excluding the S&P 500. So, it tracks the mid, small, and micro cap companies. So the Russell 2000 is included in the Wilshire 4500, but its only 2000 of 4500.

The C Fund is essentially the S&P 500 in my mind.

Dividend payments and management expenses can push returns around a tiny bit as well.

REITs getting absolutely hammered today. AGNC down 27%, NLY down 30%.... just today.

There are a lot of small banks and oil related companies in the Wilshire 4500 and those are being hit particularly hard. Plus they don;t have any of the large tech FANG type stocks, so there are some hindrances without the large tech propping it up like the S&P 500.

Originally Posted by k0nkuzh0n

REITs getting absolutely hammered today. AGNC down 27%, NLY down 30%.... just today.

Hmm, is that related to the better-than-expected housing starts report this morning? Are housing starts (and mortgage rates?) inversely related to REIT performance? I could see that having a relatively strong correlation.

Originally Posted by bmneveu

The S Fund tracks the Wilshire 4500

Originally Posted by k0nkuzh0n

REITs getting absolutely hammered today. AGNC down 27%, NLY down 30%.... just today.

Originally Posted by tsptalk

There are a lot of small banks and oil related companies in the Wilshire 4500 and those are being hit particularly hard. Plus they don;t have any of the large tech FANG type stocks, so there are some hindrances without the large tech propping it up like the S&P 500.

Thank you all! I really appreciate the clarification!

Originally Posted by bmneveu

Hmm, is that related to the better-than-expected housing starts report this morning? Are housing starts (and mortgage rates?) inversely related to REIT performance? I could see that having a relatively strong correlation.

Ohhhh I just heard Trump say all foreclosures and evictions are suspended until further notice. Yep, that'll do it.

Originally Posted by bmneveu

Ohhhh I just heard Trump say all foreclosures and evictions are suspended until further notice. Yep, that'll do it.

I will provide a place to live for people that were forced into unemployment by COVID-19.

Originally Posted by bmneveu

Ohhhh I just heard Trump say all foreclosures and evictions are suspended until further notice. Yep, that'll do it.

https://www.insidernj.com/press-release/sheriff-cureton-suspends-evictions-bergen-county/

Sheriff Anthony Cureton announces the suspension of all evictions by the Bergen County Sheriff’s Office until further notice as the County and State continue to grapple with the COVID-19 health crisis. This order follows recent measures taken by Governor Murphy and County Executive Tedesco urging residents to work from home and practice social distancing.

NYSE to temporarily close trading floor, move to electronic trading because of coronavirus Source: CNBC This is breaking news. Please check back for updates. New York Stock Exchange said Wednesday that it will temporarily close its trading floor and move to electronic trading due to the coronavirus pandemic. All-electronic trading will begin with Monday’s market open. The facilities to be closed comprise the NYSE equities trading floor in New York, NYSE American Options trading floor in New York, and NYSE Arca Options trading floor in San Francisco. The decision to temporarily close the trading floors represents a precautionary step to protect the health and well-being of employees and the floor community in response to COVID-19. “NYSE’s trading floors provide unique value to issuers and investors, but our markets are fully capable of operating in an all-electronic fashion to serve all participants, and we will proceed in that manner until we can re-open our trading floors to our members,” said Stacey Cunningham, President of the New York Stock Exchange. “While we are taking the precautionary step of closing the trading floors, we continue to firmly believe the markets should remain open and accessible to investors. All NYSE markets will continue to operate under normal trading hours despite the closure of the trading floors.” Read more: https://www.cnbc.com/2020/03/18/nyse...ronavirus.html

Originally Posted by James48843

NYSE to temporarily close trading floor, move to electronic trading because of coronavirus Source: CNBC This is breaking news. Please check back for updates. New York Stock Exchange said Wednesday that it will temporarily close its trading floor and move to electronic trading due to the coronavirus pandemic. All-electronic trading will begin with Monday’s market open. The facilities to be closed comprise the NYSE equities trading floor in New York, NYSE American Options trading floor in New York, and NYSE Arca Options trading floor in San Francisco. The decision to temporarily close the trading floors represents a precautionary step to protect the health and well-being of employees and the floor community in response to COVID-19. “NYSE’s trading floors provide unique value to issuers and investors, but our markets are fully capable of operating in an all-electronic fashion to serve all participants, and we will proceed in that manner until we can re-open our trading floors to our members,” said Stacey Cunningham, President of the New York Stock Exchange. “While we are taking the precautionary step of closing the trading floors, we continue to firmly believe the markets should remain open and accessible to investors. All NYSE markets will continue to operate under normal trading hours despite the closure of the trading floors.” Read more: https://www.cnbc.com/2020/03/18/nyse...ronavirus.html

I wonder how this will affect volume and liquidity? I imagine most of that comes from electronic trading these days anyway.