Sunday, February 6, 2011

New Buy Signals for Monday, February 7th

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Over the past week the three primary funds of the TSP signaled entry.  Here is the 1-month performance chart of the 4 primary funds available with TSP:



Here is what my personal GGT system has to say about the TSP funds:



Essentially, we have long signals for the equity funds and we have cash signals for the bond fund.

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Here are the allocations going into Monday, February 7th:

3-Fund Portfolio

This portfolio invests in only the three primary equity funds, using the G-Fund as a safe haven.  This is an aggressive fund in that there is no bond component:

  1. G-Fund:  0%
  2. I-Fund / EFA:  46%
  3. C-Fund / SPY:  29%
  4. S-Fund / VXF:  25%



4-Fund Portfolio

This portfolio invests in all available equity and bond funds from TSP, and uses G-Fund as a safe haven.  This is a more conservative fund because of the bond component.

Note that the bond component is in CASH right now.

  1. G-Fund / Cash:  7%
  2. F-Fund / AGG:  CASH
  3. I-Fund / EFA:  40%
  4. C-Fund / SPY:  28%
  5. S-Fund / VXF:  25%


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Your actual situation may be different so adjust your cash position/allocation percentages accordingly with your risk tolerance.  I do suggest keeping the same ratio though, as this has been proven in the past to optimize returns.

My trades will be effective the evening of Monday, Feb 7th.  I am a 3-Fund Portfolio person ...

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Remember, you are responsible for your actions, and I am not.  Please do your diligence, and please take ownership for your decisions.

Regards,

pgd


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