I am going to put all my money in the F fund

[titan3d]

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The F-Fund is the lowest non-G TSP fund and nobody wants it. Everybody thinks the bond market is going down and when everybody is on one side of a trade, its smarter to be on the other side. For this reason, I think the F-fund makes more sense right now than any other fund. The masses are always wrong, and right now the masses don't want the F-fund, so I want it.

 

[cowboy]

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Cool! Might be the smartest move of all, good luck to you!

 

[Dukester]

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Good Luck .............that's the one fund I would never put any money into....reward to risk factor not good enough for me....always seem to climb slow (if at all) but seems to drop at will

 

[titan3d]

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http://finance.yahoo.com/q/bc?s=%5EGSPC&t=2y&l=on&z=m&q=l&c=agg

Looks like major divergence between the C fund and the F fund since 2003. All imbalances like this are corrected in time. I only wish I had F fund data going further back so I could do a historical comparison. AGG, the F fund equivalent, only goes back to 2003.

 

[rokid]

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Titan3d,

The F Fund tracks the Lehman Brother U.S. Aggregate Bond Index. If you're interested, I've got annual return data back to 1983.

 

[titan3d]

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rokid wrote:

Titan3d,

The F Fund tracks the Lehman Brother U.S. Aggregate Bond Index. If you're interested, I've got annual return data back to 1983.

Can you post a chart comparing theC fundand the F fund since 1986?

 

[rokid]

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Titan3d,

Hopefully, this spreadsheet contains the data you need. If not, let me know. In addition, pls let me know if you find any mistakes and/or can fill in some of the blanks.

Enjoy.:^

 

[rokid]

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For those who don't have Excel:



F Fund C Fund


1986 15.29 18.50

1987 2.75 5.20

1988 3.63 16.80

1989 13.89 31.03

1990 8.00 -3.15

1991 15.7530.77

1992 7.20 7.70

19939.52 10.13

1994 -2.96 1.33

1995 18.3137.41

1996 3.66 22.85

1997 9.60 33.17

1998 8.70 28.44

1999 -0.85 20.95

2000 11.67 -9.14

2001 8.61-11.94

2002 10.27-22.05

2003 4.11 28.54

2004 4.30 10.82

Average 7.97 13.55

Std.Dev. 5.64 16.94

 

[titan3d]

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Thanks rokid for all this info. I see that even in 1994 when bonds suffered very badly, the F fund only went down 3%. That indicates to me there is very little risk by putting most of my money there now.

 

[rokid]

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Titan3d,

RE: 100% F Fund. Using historical TSP Fund data (1988-2004), adiversifiedportfolio of 27% G, 51% F, and 22% S, would give you the same return (7.97%) at lower risk (4.85%).

Something to consider.