C vs. S

[jkenjohnson]

The C fund actually ouperformed the S fund in February. In the past, the S fund usually outperforms the C fund. So would a 50%C and 50%S entry (whenever you decide to get back in) be wise, or just stick with the S? I think S will eventually outperform the C. Thoughts?

 

[Sensei]

Well this was what Cactus had to say about it in the Alternate LMBF thread:

Interesting thought, Sensei. I went back to the charts at the beginning of this thread, and the C Fund is the only fund that has never had 2 consecutive months in LMBF and it only happened once for LMBF-1. Here is the count of the funds that have followed C in LMBF-1.

[TABLE="width: 50"]
[TR]
[TD]G
[/TD]
[TD][/TD]
[/TR]
[TR]
[TD]F
[/TD]
[TD]1
[/TD]
[/TR]
[TR]
[TD]C
[/TD]
[TD]1
[/TD]
[/TR]
[TR]
[TD]S
[/TD]
[TD]8
[/TD]
[/TR]
[TR]
[TD]I
[/TD]
[TD]2
[/TD]
[/TR]
[/TABLE]

As you can see, 8 times out of 12 the S Fund follows C. That happens way more then any other fund. I don't know if this means anything, but since we never follow with the G fund and only once with the F fund I wouldn't consider C outperforming S to be a bearish sign. It looks more like S has some catching up to do. :laugh:

http://www.tsptalk.com/mb/longer-term-fund-strategies/15018-alternate-lmbf-methods.html

 

[DakotaKid]

My view of the two is the S fund is more volatile, while the C fund is more steady due to the makeup of the fund it tracks - the S&P 500. Being made up of the rest of the companies not in the S&P500 (typically smaller, less established companies), The fund that the S fund tracks is less stable, usually resulting in bigger swings (both high and low). I prefer the S fund. BT prefers the C, and I'm sure he'll soon tell you why

 

[JTH]

If you go to the TSP website, look at the monthly returns for March going as far back as the 2 funds go together, you'll see the S-Fund outperforms the C-Fund. Or you could just go to my thread and look at this post.

 

[jkenjohnson]

I will probably stick with the S if we get a pullback. Not buying in until we get a 2-3% pullback.

 

[nasa1974]

Good thread. Just doesn't belong here. Moved it to Day to Day Market Talk. Keep up the good work.