Good evening, TSPwire Tactical Investor!
Small but unexpected drop in employment increased concerns about economic growth in US. Stocks fell and Treasury securities rallied Friday as investors look for safe harbor. Rising prices sent yields on two-year and 10-year Treasury notes to their lowest level in more then 18 months.
US stock markets which had been nearly unchanged on the week coming into Friday dipped down 1.9%.
Because of declines on Wednesday and Friday, it was US stock market’s worst week since late July.
The good news is that Wall Street agrees that Friday’s jobs data removed any doubt Federal Reserve policy makers will cut its key interest rate target at their September 18th meeting or sooner. We expect Feds to cut 0.5% on the nearest meeting and then do two more 0.25% cuts by the end of the year.
Overall I Fund still looks more attractive then C and S Funds. We will keep our distribution at 50% I Fund, 30% C Fund and 20% S Fund.
Rebalance your portfolios and be ready to roll!