350Z's 2007 I Fund Thread

[ebbnflow]

g 11.94
f 11.29
c 17.06
s 20.79
i 24.52

Looks like the I Fund gained 4 cents.

Thanks, fabijo! Not too bad...a -FV of -.16 cents.

 

[fabijo]

Greg, thanks for the info. However, most of the time that you have two UfVs consecutively, that is because the UfV from the day prior is taken into consideration in the pricing of the stock.

If the index said -1%, but Barclay's took -2% on day one, then
the index may say -1% on day two, but Barclay's has around 0% on day two. The two days together make the I Fund and the EAFE closely match up.

 

[Griffin]

Hey, I'm not angry.

Greg, I wasn't attacking you or your post, and I'm glad your not angry, because it certainly was not my intention to irritate you. I do disagree with your assessment of the FV for exactly the reason you touched on below.

I respectfully disagree. On days that we don't have an UfV, we know 30-minutes before the noon-deadline what the I-fund will sell at the end of the day. With the S-fund, there is the 4-hour deadzone until the end of

Think of what the world would be like without the FV process. Pretend for a minute that TSP were to develop a Far East Fund (lets call it the E-fund). The E fund markets would all close up around 4:00 to 5:00 am EST, which then would give TSP participants a full 7-8 hours of market action to see how the world reacts before you would have to make a decision to buy. That means you could see almost all of the rest of the worlds response and set up before you have to decide. Sounds great, right? Think of the enormous advantage that gives you, over the guy who has to buy in real time. But without the FV process, the rest of the world would be able to do the same thing.

What you would end up with is: American's would invest in the Far East, Asians/Australians would invest in the European markets and Europeans would invest in the North American markets. The advantage goes to the foreign investors with the biggest time lapse. Since the US market is by far the largest in the world, and the Europeans would have the advantage, they would ultimately be able to profit more from us then we could from anybody else which means at the absolute macro perspective, US profits would flow overseas. The only way to keep it fair is to introduce a real-time adjustment....which is FV. It's not Unfair...it's absolutely necessary for the economy of the US. Where FV does become unfair is when it becomes forward looking to the point that it starts to account for gains beyond the scope of the event that triggered the FV (i.e. todays .80% gain in the S&P 500 should be the limit - if the FV went beyond .80% then it would have been absolutely unfair).

 

[Show-me]

Not as bad as it could have been. Some days you get the FV and some days the FV gets you.

 

[Griffin]

Not as bad as it could have been. Some days you get the FV and some days the FV gets you.

Yeah, I can live with it. If the OSMs move to the top of their respective channels, we should about break even if we sell tomorrow. If the USM moves into new high territory then it will be wise to hold onto your I, however, if the USM can't break resistance, then it seems prudent to move into the G or F, since at least a small consolidation would be likely prior to the next push up.

 

[fabijo]

I found this little summary on FVs for mutual funds:

Valuation Obligations
The SEC has outlined four obligations relating to fair valuation.
When it adopted the compliance program rule (Rule 38a-1 under
the Investment Company Act), the SEC stated that a fund must:

1. Adopt written policies and procedures that require the fund
to monitor for circumstances that may necessitate the use of
fair value pricing;
2. Establish criteria for determining when market quotations
are not reliable for a particular security;
3. Establish a methodology or methodologies to determine the
current fair value of a security; and
4. Regularly review the appropriateness and accuracy of the
methods used in valuing securities.

The above is in this document:
http://www.ici.org/issues/dir/05_fair_valuation_intro.pdf

I would guess that Barclays loves to have any excuse as possible to do a fair valuation. They also have the advantage of knowing what trades are going to be executed the following day, because the TSP sends them the orders by 2pm. So, they already know how many people are planning on leaving the I Fund and how many people are planning on entering the I Fund. They can weigh the difference and adjust the FV in their favor.

 

[McDuck]

most of the time that you have two UfVs consecutively, that is because the UfV from the day prior is taken into consideration in the pricing of the stock.

If the index said -1%, but Barclay's took -2% on day one, then
the index may say -1% on day two, but Barclay's has around 0% on day two. The two days together make the I Fund and the EAFE closely match up.

I agree with that.

 

[350zCommTech]

Wow! Check out the volatility in the ORDS and the Nikkei.

 

[fabijo]

Very nice

 

[GGal]

I feel so very fortunate not to understand a word of this. It makes me less fearful.

 

[Show-me]

Shanghai is struggling tonight, not good.:worried:

http://finance.yahoo.com/q/bc?s=000001.SS&t=1d

 

[ATCJeff]

Shanghai is struggling tonight, not good.:worried:

http://finance.yahoo.com/q/bc?s=000001.SS&t=1d

Coming back....

http://finance.yahoo.com/q/bc?s=000001.SS&t=1d

 

[fabijo]

Is this where the phrase, "I've been Shanghai'd" comes from?

 

[Fivetears]

If we all get a Shanghai Shafted tomorrow, at least we'll all be in good company. If Greenspook put's in his usual rhetoric in the next 16 hours, we can all kiss 2 - 4 percent good-bye.

 

[jayhawker]

All countries in the green at this time!

Early, early estimate: +.82 or +20 cents -16 FV = +4 cents.

I gotta' get some sleep! Vegas was awesome!!!

 

[USNAVYRETIRED]

Remember, what happens in Vegas stays in Vegas! :blink::nuts::blink:

...and usually, it's your $$$!

 

[MR_BOOOOM]

I know it has been posted in this thread before, but I just can't find it. What are the major exchanges in the "I" ? I know the Nikkei is a large part of it and the Shanghai Composite is not. Anyone take it from there ?!?! Thanks in advance.

 

[Show-me]

Good morining! Good to see Shanghai turned around.

 

[350zCommTech]

I know it has been posted in this thread before, but I just can't find it. What are the major exchanges in the "I" ? I know the Nikkei is a large part of it and the Shanghai Composite is not. Anyone take it from there ?!?! Thanks in advance.

Here:

http://www.tsptalk.com/mb/showthread.php?t=26

 

[350zCommTech]

GDP was revised lower than expected and the dollar has fallen but inflation is keeping the dollar from plunging. We really need the dollar to fall more to offset the raping we are going to get tonight from Barclay.