Thursday, May 29, 2014

New Long Signal, May 29, 2014

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With the close of markets on Thursday, May 29, 2014, my timers have all signaled "long".  This means that I am transitioning from the TSP "G Fund", which is essentially a money market, into the equity funds.

If you are conservative you may want to consider a position in the F-Fund, which is a bond fund.  The F-Fund is up 1.11% over the past month, due mostly to the weakness of equities, but with the summer months here it could be a slight hedge against the equity markets.  Of course, you could leave a position in the G-Fund and lower your risk by that amount.

Representative "Conservative" positioning would be along the lines of:

F-Fund:  12%
C-Fund:  32%
I-Fund:  26%
S-Fund: 30%

Because Kari has a long number of years before she can tap these monies, we're more aggressive.  Our allocations for the next leg are:


C-Fund:  39%
I-Fund:  26%
S-Fund: 35%

Note that there is no position in the G-Fund (money market) or F-Fund (bonds).  We are fully exposed to the market with this allocation.

The change has been made -- if you make the change before noon EDT on 5/30/2014 it most likely will be made Friday night and will count against the May transfer allotment of 2 transfers per month.  This means we are starting June with a clean slate, which is always welcomed.

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

Regards,

pgd

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