401K Monthly Analysis – The trend that refuses to end

All kinds of pundits are saying we are due for a correction, time to get out but the market keeps wanting to go up. As long as Yellen holds up on raising interest rates, and as long as the growth remains tepid, we are trending upwards. S&P500 (SPY ETF) remains caught in a sideways motion for a few months now and the only resolution possible is Up or Down. See chart below.

In my current employer’s 401K, the funds showing most strength are Fidelity Growth Strategies, Fidelity Blue Chip Growth and Fidelity Div Intl. Growth, Blue Chip and International.

In my previous employer’s 401K the top funds are Fidelity Invst Div Intl, Artisan Mid Cap FD and Fidelity Mt Vernon Growth…  all in all, a blend of growth and international funds again. Bond funds are nowhere in the top few yet.  

Long term treasury bond fund (TLT) hit a lower low and has been retreating. The inverse bond fund TBF is showing signs of strength. See chart below. All this has been on the likelihood of interest rates going up. There are those that feel that the Feds cannot raise interest rates and if we see that, then the market may very well surprise the pundits once again. I remain cautiously optimistic.