I’ve been in the I fund for the last 2 months and I am moving to the S fund because it has outperformed the C & I for the last 6 years on average for the month of March. Todays drop has nothing to do with my move(in fact I told Fivetears and Viking this over a week ago during breakfast with my trusty TspTalk.com coffee mug), as I’m typing this, the Nikkei 300 is down by 3.5%, so this may not be the smartest move. With the dollar so low I believe that the S fund is the place to be, the dollar is likely to rebound over the next few weeks.
I’ve been busy with construction of my new house. Today, the wife and I looked at an investment property that we were going to put an offer on until our RE broker told us it already had a contract pending. That just means that someone else thought it was a good deal and we are searching for another one while we wait and see is this one closes or falls through. Even if I lost 3% today with my TSP and maybe more tomorrow it doesn’t really phase me. In a month or two the market will rebound to another all time high. By the time I get ready to take payments from my TSP account, I will probably have enough cash flow from real estate and other investments that I wont even need this money, but it’s a good back-up plan.