FundSurfer
Well-known member
Yep. I'm with ya on that one. Still don't know what Jan. 3 will bring yet so you may yet be happy with your decision. I'm thinking more bullish than I was.
-
The Forum works well on MOBILE devices without an app: Just go to: https://forum.tsptalk.com
-
Please read our AutoTracker policy on the IFT deadline and remaining active. Thanks!
-
$ - Premium Service Content (Info) | AutoTracker Monthly Winners | Is Gmail et al, Blocking Our emails?
Find us on: Facebook & X | Posting Copyrighted Material
-
Join the TSP Talk AutoTracker: How to Get Started | Login | Main AutoTracker Page
-
The Forum works well on MOBILE devices without an app: Just go to: https://forum.tsptalk.com ...
Or you can now use TapaTalk again!
Playing the I fund
- Thread starter clester
- Start date
Unbelievable. The I fund will be taking it's customary place, several percent ahead of me, within 1 day of the new year. I've probably said this on the board once or twice and I've definitely said it to myself a couple of dozen times but here it is one more time - If I get ahead of the I fund at any point this year, I'm just going to plant my money there and leave it.
ayla
Member
I'm there with you though I'm not going to wait to "get ahead". I'm in the I fund and plan to TRY to stay. The only exception I know about at this point will be if the VIX pops its ugly head too high, then I move to the parking lot. AND I will buy back into the I fund as the VIX heads back down.
There is another exception. If the S fund (or C fund) seriously start beating the I fund on a monthly basis (or several weeks anyway). I will head to one of those. I'm going to try to go with the "trend" this year, and not gauge my trading by my own creativity.
(Famous last words - it is hard to get away from the fun of trading daily but my new years resolution is to try to break that habit, LOL)
350zCommTech
Well-known member
Up 1.53% or 34 cents.
I have to check all the currency values again because I'm having a problem with Java and Fxstreet.com.
I have to check all the currency values again because I'm having a problem with Java and Fxstreet.com.
nnuut
Moderator | TSP Legend
Up 1.53% or 34 cents.
I have to check all the currency values again because I'm having a problem with Java and Fxstreet.com.
34 cents, I'll drink to that! Is the FV still in play if the US Markets are closed? Not up, not down, neutral? What?
Maybe tomorrow afternoon, watch out!:notrust:
350zCommTech
Well-known member
34 cents, I'll drink to that! Is the FV still in play if the US Markets are closed? Not up, not down, neutral? What?
No, there's no need for a FV when TSP is closed. Even if there's a big change in the dollar this afternoon. Tomorrow is a different story though.
350zCommTech
Well-known member
When FV is figured it should be calculated on the difference in the value of the currencies and market performances from the COB the Dec. 29th to the COB Jan. 3rd, I would think!
No, it doesn't work that way.
350zCommTech
Well-known member
I think the FV is applied by Barclays, TSP is just a small part of the picture.
350zCommTech
Well-known member
True, Barclays applies the FV but, when they do it for the our I fund, it's in respect to our TSP. I'm sure they do the same for other retirement systems but when they apply it to our I fund, it's strictly for our TSP. The FV is designed to stop us from timing the I fund in our TSP. With TSP closed, we can't trade or time the market thus, no need to apply FV. Without it, we would all be making a lot more money.
nnuut
Moderator | TSP Legend
Do you really think the only reason the "I" fund has FV applied is to keep us from timing the market?:worried:True, Barclays applies the FV but, when they do it for the our I fund, it's in respect to our TSP. I'm sure they do the same for other retirement systems but when they apply it to our I fund, it's strictly for our TSP. The FV is designed to stop us from timing the I fund in our TSP. With TSP closed, we can't trade or time the market thus, no need to apply FV. Without it, we would all be making a lot more money.
nnuut
Moderator | TSP Legend
Well, mostly!
6. Why doesn't the change in the I Fund share price always correspond to the EAFE Index which it tracks? 
Participants have asked why, on some days, the change in the I Fund share price reported by the TSP does not match the change reported for the Morgan Stanley EAFE (Europe, Australasia, Far East) index, which the I Fund tracks. This happens when the Board's investment manager, Barclays Global Investors (BGI) reprices its EAFE Equity Index Fund, in which the TSP invests, after the close of the foreign markets. This process, known as "fair valuation" or "fair value pricing" occurs when there are large U.S. market or currency movements between the time the foreign markets close and 4:00 p.m. eastern time, when BGI's share prices are determined.
Fair value pricing is used by mutual funds when there is a gap between the time the index closes and the time the fund is priced to reflect the index. Fair value pricing was implemented to protect long-term shareholders from short-term traders attempting to profit from price difference between the index's closing price and the price of the fund before it was repriced. While it causes some variation in daily pricing, the variation is generally reversed the next day.
Fair value pricing in the TSP's I Fund occurs less than 20% of the time. The TSP is meant to be a long-term retirement savings account, not a short term trading vehicle. Mutual funds use fair value, redemption fees, and limits on numbers of trades to prevent market timing activity and the resulting excessive trading costs from hurting the performance of the fund. To date, the TSP has chosen to use only fair value pricing, but that may change in the future.
Fair valuation ensures that traders cannot "market time" the I Fund by making investment decisions based on the "stale" prices, thus diluting the returns of other participants who invest in the I Fund. Because the EAFE uses the foreign market closing prices to calculate its values, its price change will differ from the TSP's on those days.
http://www.tsp.gov/faq/faq4.html#sub1
Participants have asked why, on some days, the change in the I Fund share price reported by the TSP does not match the change reported for the Morgan Stanley EAFE (Europe, Australasia, Far East) index, which the I Fund tracks. This happens when the Board's investment manager, Barclays Global Investors (BGI) reprices its EAFE Equity Index Fund, in which the TSP invests, after the close of the foreign markets. This process, known as "fair valuation" or "fair value pricing" occurs when there are large U.S. market or currency movements between the time the foreign markets close and 4:00 p.m. eastern time, when BGI's share prices are determined.
Fair value pricing is used by mutual funds when there is a gap between the time the index closes and the time the fund is priced to reflect the index. Fair value pricing was implemented to protect long-term shareholders from short-term traders attempting to profit from price difference between the index's closing price and the price of the fund before it was repriced. While it causes some variation in daily pricing, the variation is generally reversed the next day.
Fair value pricing in the TSP's I Fund occurs less than 20% of the time. The TSP is meant to be a long-term retirement savings account, not a short term trading vehicle. Mutual funds use fair value, redemption fees, and limits on numbers of trades to prevent market timing activity and the resulting excessive trading costs from hurting the performance of the fund. To date, the TSP has chosen to use only fair value pricing, but that may change in the future.
Fair valuation ensures that traders cannot "market time" the I Fund by making investment decisions based on the "stale" prices, thus diluting the returns of other participants who invest in the I Fund. Because the EAFE uses the foreign market closing prices to calculate its values, its price change will differ from the TSP's on those days.
http://www.tsp.gov/faq/faq4.html#sub1
Similar threads
- Article
- Article