H1 2022 Concerns

Not going to disagree with your small cap outlook. Small cap upside will be hard to maintain if/when rates rise.
 

Mitchcap09

New member
Hello everyone,

New to TSP Talk, however, I decided to post some thoughts and start a thread with my concerns over monetary policy heading into the new year. With many economic indicators, it shows that both economic activity and inflation will soon peak. I believe this will cause a correction in the risk assets and the indices moving forward into the new year. QE and fiscal stimulus created by central banks and government have created a bubble with several asset class systems like crypto, housing, and stocks. I believe, just my thoughts, that we will see a correction in the indices H1 of 2022. My TSP allocation currently is 75% G & 25% S fund as this has corrected enough to see some returns, however, when the major indices correct, these small caps will deflate as well.
 
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