350Z's 2007 I Fund Thread

[DrFaustus]

Speaking of manipulation, does anyone remember that proposal last year to add a REIT option to the TSP that was shot down. Considering what we know now about subprimes that we didn't know last year, could this proposal have been a precursor to what is happening now.

In last year's government executive, it said ""A great deal of concern was raised about the possibility of political manipulation of large pools of Thrift Plan money. This legislation was designed to preclude that possibility. One, the board, composed of presidential appointees, could be susceptible to pressure from the administration. Two, the Congress might be tempted to use the large pool of thrift money for political purposes."

Just wondering. The article is at http://www.governmentexecutive.com/story_page.cfm?filepath=/dailyfed/0406/042706r2.htm

That's an interesting article. I seem to recall that the Congress raided the TSP about 10 years ago for funds when there was a government shutdown. We eventually received all of the money back, but the scare was there.

I don't know about the addition of new funds causing increased admin costs since most of it is run by computer, I can't imagine what the genesis of the increased costs would be.

But new funds are headaches in themselves ... the investors have to take the time to understand them and weigh A vs B before investing. And there are other considerations - how would REIT funds affect daily valuation, for instance? If you have too many funds, you could paralyze the investor.

Personally, I'd like to see the TSP create the ability to short an index before adding new ones to the mix.

 

[Wrngway]

Who started that rumor?

Must be like you said - some hedge fund holding shorts.

Wow...that's some classic bear action right there!

 

[sugarandspice]

I fund up 44 cents today.

 

[Griffin]

Something similar happened about a year ago and at that time we had a big discussion about the legality and possible outcome.

That's an interesting article. I seem to recall that the Congress raided the TSP about 10 years ago for funds when there was a government shutdown. We eventually received all of the money back, but the scare was there.

I don't know about the addition of new funds causing increased admin costs since most of it is run by computer, I can't imagine what the genesis of the increased costs would be.

But new funds are headaches in themselves ... the investors have to take the time to understand them and weigh A vs B before investing. And there are other considerations - how would REIT funds affect daily valuation, for instance? If you have too many funds, you could paralyze the investor.

Personally, I'd like to see the TSP create the ability to short an index before adding new ones to the mix.

 

[Fivetears]

Overnight, the Reserve Bank of Australia upped its key rate by a quarter of a percentage point, to 6.5%, and said credit-market developments "to date don't appear to have changed significantly the broader global outlook."
http://www.marketwatch.com/news/sto...-A837-47C9-A553-38B427B8717E}&dist=TNMostRead

 

[Robo5555]

Any opinions on Thursday??

 

[Aspiration]

The markets will move higher and lower ending higher or lower than today. :cheesy:

 

[tataberto]

Or they could move lower and higher, thus ending lower or higher than today. :suspicious:

Originally Posted by Aspiration
The markets will move higher and lower ending higher or lower than today. :cheesy:


:nuts:

 

[Rascle Man]

Was there any FV yesterday?

tia

 

[12%ayear]

Was there any FV yesterday?

tia

no ......

 

[clester]

Bloomberg only showing -.919 I was ecpecting much worse. I guese Japan is helping us. EU is down big.

 

[12%ayear]

watch for postive news today..the sharks at work..looking for a green day for the USMs. Love it when futures are deep red before the open. This is good because it is very bad to have green futures after a big rally day. Watch for some spinning!!

 

[clester]

The French got us this morning. The Sub prime thing again. now its overseas too.as of 6:54 bloomberg has us -.99% and dropping.

 

[Aspiration]

Or they could move lower and higher, thus ending lower or higher than today. :suspicious:

Touche' Pal! :nuts:

 

[12%ayear]

Bush is a idiot anyway. We all know he talks of out of his ass.(RUMORS) The sell-off was because there is a large brokerage that will be warning about earnings after-hours. I bet it will not pan out!! QUANT FUNDS getting hurt???????????????? http://www.investopedia.com/terms/q/quantfund.asp

I spoke about this yesterday....QUANT FUNDS...today WallstJ. wrote about this!!

 

[fabijo]

watch for postive news today..the sharks at work..looking for a green day for the USMs. Love it when futures are deep red before the open. This is good because it is very bad to have green futures after a big rally day. Watch for some spinning!!

Sounds like a plan to me! Come on, U.S. Markets!!

 

[fabijo]

I spoke about this yesterday....QUANT FUNDS...today WallstJ. wrote about this!!

Quant ("Quantitative") Funds - run by computer models of market behavior

Here's a small quote from the article. I put in bold where it suggests internationals are in for more woes.

In most cases, their losses had nothing to do with the meltdown in the subprime-mortgage market and occurred across all strategies. Moreover, in many cases, those losses were magnified by the use of borrowed money.

Yesterday, many fund managers were watching for additional knock-on effects of recent losses, which have forced funds like Global Alpha to liquidate certain risky positions. Some think the pain will next be felt overseas, in places such as the United Kingdom and Japan, where asset managers are also likely to begin offloading riskier bets.

The reliance on models can be especially problematic because many quant hedge funds have very similar models. That means they are often doing the same trades and buying the same shares. Moreover, because the strategies are supposed to be market-neutral, with no net positive or negative bent, the funds often borrow large sums so they can bet more and achieve better returns when things go their way.

That massive borrowing adds to the pressure when markets reverse course several times in the course of a single day, as the stock market has done repeatedly in recent weeks, or when tried-and-true relationships between different markets suddenly break down.

 

[ChemEng]

Strong down morning for I today. Showing -29 cents. Dollar is increasing which isnt helping either.

 

[atcbullet]

Thanks EBBCHART. :worried:

 

[malyla]

How is the ECB injection of 95B into the money market going to affect the OSM tomorrow???