June 3 Weekend Update - Partial Move to F-Fund

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Summary

• Overall, we're 100% in cash as of the 5/24 close
• The I-Fund and S-Fund have both indicated transactions back to LONG, but, with the C-Fund clearly in CASH, we will remain in CASH between the equity funds.
• The F-Fund, which is a bond fund, is indicating we should be long.

Conclusions:  for the more aggressive, partial allocation in the F-Fund could be prudent.

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Interest rate risk (e.g., hikes), is relatively low due to the poor showing of the economy, specifically, last week's jobs reports.  This means that bonds should continue to appreciate, and the general trend has been for yields to drop over the past month.  While I typically do not allocate money to bonds when I can allocate to equities, since I'm in cash, I do have funds to play with.

Correspondingly, I'm moving 46% of the available funds to the F-Fund, which is a bond fund.  The remaining 56% will remain in the G-Fund.

We are nearing oversold levels, which means the equity markets could bounce here in the next week.  Despite this possibility, I do not intend to move into the C-Fund, I-Fund, or S-Fund until we see some form of stabilization in the equity markets.

Regards,

pgd