G Fund

BTW, I love how you start pouting and stop predicting just because others are also. Don't play nicely with others? Taking your crystal ball and going home? :rolleyes:
 
Here is what I am getting from 2-June-2003 until today.

Fund\Share Price Purchase 2-June-2003\Price today\G-penny strategy fund price today\%increase buy and hold\%increase G-penny strategy\diff in % increase

F\$9.97\$10.97\$12.42\10.03%\24.57%\14.54%
C\$10.03\$15.03\$16.19\49.85%\61.42%\11.57%
S\$10.05\$17.96\$20.40\78.71%\102.98%\24.27%
I\$10.17\$20.45\$20.85\101.08%\105.01%\3.93%

Looks like not too big a difference on the I, but significant difference on the F,C, and I.

I was thinking, how could someone benefit from knowing the G-fund penny?

I came up with this G-fund / C-fund strategy. If you calculated every day the G-fund would pay the penny (correctly) and made a one day switch to the G-fund each time to get the penny from a C-fund position, what would your return be? (Keep 100% C-fund except switch to 100% G for penny days.)

Below is a table for the data I have with me

Code:
Year          C-fund     C/G Penny Strategy
2004            10.82%        12.41%
2005            4.96%          8.2%
2006-YTD        9.67%        15.24%
Not too shabby. You end up beating the S&P 500.
 
Yes, it does but at times I spend more than one day in the "G" trying to get the penny. If it's not really clear what day it will fall and you can't verify until the end of the day, sometimes I wait another day to be sure to get it. I have missed a few short term spikes that hurt alot.:o
 
Here is what I am getting from 2-June-2003 until today.

So you looked at the gain for each fund if you jumped from the fund to the G-fund on just the penny days, right? That is a pretty big percentage gain over three years. It would make sense to a buy and hold type. In the calculations, did the c-fund g-penny strategy beat the c-fund every year?

I think that with a little effort, you can correctly predict the g-penny. The key is to calculate the daily gain using the current monthly interest rate.

This strategy will only work for awhile. As the share price grows, eventually the g-fund will pay every day and you'd loose the advantage.
 
I think there is a definite role for this--like now when the market is jumping all over the place but is trending overall up--but seasonally there are blocks of time when the annualized yield is greater than 25% so you might be better off staying in stocks during those periods.

I'm thinking that over the summer would be the perfect time to use this strategy.
 
"Should" get the penny on Monday. If the market was up today, I probably would of transferred to the G today. However, since the market is down right now, I'm going all stocks to look for a rebound. That may not be until Tuesday because most earnings calls are scheduled for after market close Monday.
 
"Should" get the penny on Monday. If the market was up today, I probably would of transferred to the G today. However, since the market is down right now, I'm going all stocks to look for a rebound. That may not be until Tuesday because most earnings calls are scheduled for after market close Monday.

looks like a good call, milk
 
So far. :D Don't jinx me!! :p

Like I said, should get the penny today and then again on the 30th and the 3rd.
 
The G-fund penny should come on Monday. The gain will be equivalent to an annual rate of return of 21.5% (0.086% gain for the day * 250 trading days a year).

Given that the markets are stretched...

Given that today started out red...

Given that Iran is boasting that they have doubled uranium production rates...

The penny is looking mighty good right now... a definite soft spot.
 
Penny should pay out on Monday and then again on Friday the 3rd. By my calculations of course.................
 
Yep, I concur. Next Monday 10/30, then Friday 11/3, then 11/13 (if the interest rate stays at 4.75). The penny would fall on 11/10 but that's a holiday.
 
Penny should pay out on Monday and then again on Friday the 3rd. By my calculations of course.................

You are benefiting too much from a convienent rate of return MM....I'd like to see you make the predictions stick over the next couple of years.....thats when it gets dicy.....go for it....
 
Yep, I concur. Next Monday 10/30, then Friday 11/3, then 11/13 (if the interest rate stays at 4.75). The penny would fall on 11/10 but that's a holiday.

I concur. I have it as the 10th also. Didn't even think about the holiday. So yep, the 13th it is. It is close though so if they raise the rates, it may fall on the 9th. Will have to wait and see in Nov.
 
It would be more since it is compounded, right?

The G-fund penny should come on Monday. The gain will be equivalent to an annual rate of return of 21.5% (0.086% gain for the day * 250 trading days a year).

Given that the markets are stretched...

Given that today started out red...

Given that Iran is boasting that they have doubled uranium production rates...

The penny is looking mighty good right now... a definite soft spot.
 
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