H1 2022 Concerns

Mitchcap09

First Allocation
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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.
 
Mitchcap09,

Welcome aboard. Let's hope 2022 doesn't kick us in the butt. Good luck to all of us.
 
Not going to disagree with your small cap outlook. Small cap upside will be hard to maintain if/when rates rise.
 
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