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Or you can now use TapaTalk again!BamaAF's Account Talk
- Thread starter BamaAF
- Start date
anthony
TSP Strategist
- Reaction score
- 10
If you assume that real investment in the market is a speculation on future growth, then in a recession or threat thereof the large-cap companies (DJIA & S&P500) are seen as being more insulated and therefore better poised to absorb shocks and ultimately turn their situation around. Also, large caps are more likely to pay out or even raise dividends throughout a recession, while a growth-oriented small-cap is less likely to do so, or may not have a dividend at all.
The mid, small and micro-caps found in the Wilshire 4500 are seen as being more at risk -- some of them to an extreme level to the point that they potentially lack the capital support to survive the pull-back. Or even if they are able to survive, they may have to take on significantly more debt than they can afford in order to pull-through. Relative to the S&P500, their smaller gains during bear market rallies and their deeper drops during pull-backs is a sign that investors lack confidence in small-caps at this time.
That said, when things do finally get turned around, the big gains are often made in the small companies that have been price-slashed leaving massive potential on the upside. For me, my approach at balancing the two is to focus TSP mostly in the large cap C-Fund, and focus most of my individual stocks in small-cap companies that have cash/assets and minimal debt.
Good luck!Hi BamaAF,
I heard about Citigroup job losses. I wish I had put my 100% in the G-Fund.
I am really worried about how the stock market is doing. I currently have 20% in the L fund C-20%, S-30 , I - 30%. I keep losing money and I have recently learned when a person keep moving the money around a person losses alot of money.
At this point, I am waiting for the market to rebound. I wonder should I just put my money in the G fund for now. Or wait until the end of December to see what happens. What do you all think.
Hi BamaAF,
I heard about Citigroup job losses. I wish I had put my 100% in the G-Fund.
I am really worried about how the stock market is doing. I currently have 20% in the L fund C-20%, S-30 , I - 30%. I keep losing money and I have recently learned when a person keep moving the money around a person losses alot of money.
At this point, I am waiting for the market to rebound. I wonder should I just put my money in the G fund for now. Or wait until the end of December to see what happens. What do you all think.
That is a really hard question for anyone to answer right now. Many feel we are at or close to a bottom where many others feel we will sink much further.
Depending on how long/much you have invested and how long you have to retire plays a big role -- and only you can decide your risk tolerance.
You could go 100% G and the next day have a huge rally that cements your losses. Or you could stay diverse and continue down -- no way of really knowing.
Me personnaly -- I have 80% in G and 10% each in C and S. I've taken a beating this year as you can see in the auto tracker. I should be 100% G but left 20% in stocks which has continued down -- now if I move that 20% into G I am stuck should I want to get back in stocks.
I realize not a lot of help -- but there are some really smart people here that we can learn from and there is a lot of good info to read.
Good luck and welcome...
DCguy
TSP Strategist
- Reaction score
- 2
I've been hearing unemployment rate increase, bank nationalization, penny stocks, and etc, but the market's been up for the past week or two. Should I jump into CSI or just wait? I'm starting to think the gov wont let the Dow drop below 8k.
I don't think anyone can answer that question for you... All about risk and how long you have to retirement..
Personally if I were not already in I would not come in right now, but you never know, it could continue next week.
IMO the C fund not being able to break 870 is not a good omen for next week.
In fact I'm wishing I had jumped to G today, but got wrapped up in a meeting and missed deadline by 10 minutes.Similar threads
