Please Clarify Funds

[Rod]

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I'ma beginner learning to read the market. This past Friday, The NASDAQ was up, while the DOW and S&P were down. Both C & I lost, while the S gained. So, does that mean that the S Fund is tied into the NASDAQ?

Please clarify which sector of the stockmarket is represented by the C, S, and I funds.

The C is the S&P, correct?

Which is the NASDAQ?

Which is the DOW?

Are there any combos?

I know that (I) is represented by the EAFE, but what's an indicator that the (I) is doing good / badwhen you look at the S&P, NASDAQ, and DOW?

Thank you!

 

[Pete1]

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The Dow and NASDAQ returns are not very useful formonitoring the TSP funds. The Russell 2000 is closer for the S fundbut usually, the Willshire 4500 (S fund) will trail the R2000because the midcap component of the W4500 typically yields slightly lower returns than the smallcap stocks in the R2000 but also, the losses are not usually quite as sharp as the R2000.

 

[Pete1]

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Rod,

If you are just learning about the funds, you may want to go with a longer term allocation. You should check on Tom's long-term allocation recommendations. His recommended allocations are very sound.

 

[Rod]

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Thanx Pete!

 

[Rod]

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Pete1 wrote:

Rod,

If you are just learning about the funds, you may want to go with a longer term allocation. You should check on Tom's long-term allocation recommendations. His recommended allocations are very sound.

Where would I find that at?

 

[Pete1]

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Go back to the homepage and click on Tom's comments for the current market. Within the current comments section, there is a link to the longer term outlook along with recommended long-term allocations. If you are younger and your account balance is low, go with either the moderate or agressive allocation. If you are older with a larger balance, the conservative approach makes a lot of sense. If you are older with a low balance, I would still go with the conservative approach unless you can let your TSP compound for a number of years after you have retired. If you are going toattempt to market time, mimic Tom's transactions until you have a better feel for what you are doing. You may also want to check out the timing signals listed on TSPMoney.com,. Hope this helps.

 

[tsptalk]

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Rod wrote:

Pete1 wrote:

Rod,

If you are just learning about the funds, you may want to go with a longer term allocation. You should check on Tom's long-term allocation recommendations. His recommended allocations are very sound.

Where would I find that at?

http://www.tsptalk.com/longer_term.html

I just added this link to the allocation page as well.