Perspectives

TSP Just Got Amazoned

Way, way back in August (ancient history for stock speculators) I wrote a blog post called Don’t Get Amazoned.   I was metaphorically speaking about the US stock market and what I see coming.  But guess what, the market and TSP equity funds just got amazoned…

…but only a little bit so far.

Amazon holds 3% of the SP500 market value but it was number one in its contribution to the bounce back from the January correction.  By my bar napkin calculation, it added 1.5% of the 2.0% marginal new high the SP500 managed to put in before the current correction.

Amazoned

Yes, that black plot is the SP500 compared to pump and dump Amazon

 

The other side of my bar napkin implies Amazon was not alone in the market’s downfall. Amazon only accounts for 10% of the correction since that marginal new high in the SP500, so the selling was more broad based than the rally.

I don’t want to give away the moral of the story, but a look at Don’t Get Amazoned might be a timely reminder of what’s coming to a TSP fund near you soon.  You might want to miss the show when it arrives.

We continue to monitor our indications that will tell us the difference between a correction that bounces back and a bear market rally that rolls over.

 

Invest safe, invest smart.

 


TSP & Vanguard Smart Investor

Categories: Perspectives, TSP Charts