Why is the market flat and violent short term?

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board Why is the market flat and violent short term?

This topic contains 1 reply, has 2 voices, and was last updated by  TS Paul 4 years, 3 months ago.

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  • #15684

    rolfeskj
    Participant

    Why has the market been flat for the past three months and why has the market been moving so violently up and down recently? By the numbers from Nov 14′ – Jan 15′ the C fund is down $0.53 and the S fund is up only $0.47. While in the previous 3 months Aug 14 – Oct 14 C fun was up $3.75 and the S fund was up $1.33.

    Dose this point to a need to switch to the C fund or worse are we going to hit a small recession / correction in the next year? The US economy seem to be doing okay but with a rate hike from the fed coming sooner than later, Europe heading for trouble with Greece, Russia in trouble, was looming in Ukraine (US said to arm Ukraine soon), war with ISIS, and China slowing down heading toward recession. Should we be looking at the G and F fund?

    Maybe I am just looking for the funds to go down but I rode the 08 recession to the bottom and don’t want to repeat it.

    #15701

    TS Paul
    Keymaster

    I don’t see any reason to think the markets will see a significant decline anytime in the near future. Anything is possible, but with a strengthening US economy, low interest rates, QE starting in Europe, and low oil prices, things look more to me like they are poised for a strong year economically, which should lead to at least a decent year in the stock market.

    As for recent market volatility, I think you can attribute nearly every move to changes in oil prices. While low oil overall is good for the economy, consumers, and therefore the market, remember that all those energy companies are part of the stock market so when oil prices move dramatically, so will the energy sector stocks.

    The TSP Allocation Guide www.TSPallocation.com

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