Hello everyone…
I wanted to update everyone as to the markets and various TSP funds. In addition, our colleague Mr. Dan Jamison, has released an updated version of The FERS Guide, an excellent product which he has authored himself for many years. I have not met anyone with more knowledge on FERS retirement, and we are lucky to have Dan on “our team.” The updated edition is hosted on The Fed Trader, everyone should take a look. Mr. Jamison can be contacted at dan@fersguide.com
As we all know, Sequestration has taken effect. I touched on this topic in my March 1, 2013 post, and expressed my opinion that the markets would not be affected. Fast forward to today, and the markets have closed higher, every trading day since March 1. In my March 1, 2013 post, I reflected how the 1995 government furloughs didn’t affect the markets, and used that to partially shape my decision to remain in the S-Fund.
My data and proprietary system indicates that S-Fund is still the place to be, and I remain 100% S-Fund. Some investors may want to be 50% S-Fund and 50% C-Fund, which is fine also. However “mid-cap” and “small-cap” stocks are performing best right now and these are best represented by the S-Fund. This can change in the future, and we need to monitor things and change gears if the situation warrants it.
The best YTD performer, using January and February performance, is the S-Fund (see table below).
The SP 500 Index is 23 points below its all-time high of 1576, which occurred on October 11, 2007 (see chart). If the index is able to reach 1576, this a milestone event, and there will be no stopping the index from climbing higher. Right now (and not surprisingly) the “experts” in the financial press are not talking about this, but this will be headline news if and when it happens. Expect a small sell-off if it does hit 1576, as the naysayers will be talking “the market has topped out” etc etc. However just standby as historically, all-time-highs are precursors for even higher territory.
At the present time, I am 100% S-Fund.
If you find this site useful, please share it with your colleagues and friends. Thank You.
– Bill Pritchard
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