Sunday, March 8, 2020

Waiting for a rebound

The market continues to erode last year gains, the losses take us back to a complete year by now. Since Monday 24 FEB 2020 the coronavirus cases continued to increase around the globe, and the market decline is now a correction. At this point, we recommend staying put on the sidelines (stay on the G Fund on TSP) if you want to you could consider going partially to the F fund as a way to compensate for the time on hold.

Hopefully, the rebound of the S&P 500 should be within the near future but consider that in three weeks the market lost about 20% or a complete year gains. If all works out that could easily take a year-long period to go back to the all-time market highs of early February 2020.

Outside, the alternative is clearly (TLT) for the time being. The time to pick up bargains would be when the MACD starts turning around which has not happened yet, at this point I would feel comfortable getting the golden cross signal before going long on SPY or QQQ.  Stay safe and happy returns, everyone!