Interfund Transfer 2/10 for 2/11/05

[tsptalk]

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GeorgiaGal wrote:

The first thing I noticed is that you (administrator) move money between funds a lot. I had been led to believe that we were better off to pick our allocations and leave them pretty much that way for the long haul to get better overall results. Obviously, you disagree - can you tell me why?

Welcome Jan -
Obviously this is a very common question and it has been addresses several times on the board but I'll give it to you in a nutshell.

Buy and hold is not a bad strategy. Diversifying is not a bad strategy. Moving your money around is a tough strategy but done right can be worth the trouble. From 2000-2002 the markets dropped dramatically. Sitting by and watching that was too painful for me. I watch the charts and indicators to try to tell meif it is best to be in stocks, or to be out of stocks. Of course we can't always be right, but if you can avoid some of the downside action of a bear market and get in when things start to look better, you can increase your returns.

During bear markets the G and F funds are obiously better places to put your money. The C, S and I funds are the place to be during bull markets. If you can just lose a little less during bears and make all or most of the gains during a bull you are ahead of the game. If you can make intelligent decision on when it is best to be in which funds, don't you think it would be wise to do so? We think, over the long term, we can.

Thanks for joining us.
Tom

 

[GGal]

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Hello, I am new here and hope to learn a lot. The first thing I noticed is that you (administrator) move money between funds a lot. I had been led to believe that we were better off to pick our allocations and leave them pretty much that way for the long haul to get better overall results. Obviously, you disagree - can you tell me why?



Thanks

Jan

 

[Guest]

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Has Tom been out today?

 

[ou81200]

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Tom---

Don't feel too bad. Yesterday, I was 50% C, 25 S & 25 I. But I put in For 100% G that was effective today. Looks like I misseda big gain today.

I did pretty good for the week though.

 

[cowboy]

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Cool! Now watch me get bucked off cause the bronc ate steroids!

 

[tsptalk]

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I made the move.

 

[tennisguy]

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Looks like the market finished in the green today. Tom did you move G75 C 25 or did you stay the same.

 

[tsptalk]

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I am just referring to themarket beingup today.

 

[Spaf]

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Tom...What are u looking at when you refer to "strength"? Got a new chart or web site?

 

[tsptalk]

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The "strength" is quickly disappearing. This noon ET deadline really makes things tough. I would probably not make this move if we drop hard today but if we stay up to flat I would. Of course we won't know what happens for over 4 hours.

 

[tsptalk]

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I'm using today's strength to lighten up a little more on my stock holding. Before the deadline today I will make an interfund transfer to 75% G, 25% C fund. This will be effective Friday 2/11/05.