question on I fund

[mailmanusa]

First a couple of facts, then the question. Tsp users need to get thier changes in by noon for effect that same day. There are time zones around the world. The parts that make up the I fund are in time zones ahead of eastern US time. Can one take advantage of these time zone differences to help decide when to get in or out of the I fund? If so, what are some ways to go about it? Thanks.

 

[SkyPilot]

In fact, it seems that there seems to be a built in barrier to hinder us from taking just such an advantage, called "Fair Value". However, the I fund "tends" to follow the US markets the following day... but you still have to make your move before you know how the US market will close out, which can be much different from our deadline to market close...

Good luck!

 

[Wheels]

Can one take advantage of these time zone differences to help decide when to get in or out of the I fund?

In a word, no. There are several I fund threads on this board that painstakingly go over the details of how Barclays uses fair value to negate any advantage that might have been gained. One of those threads is up to about a bazillion pages so you might have some reading ahead of you, but you'll come away with a much better understanding of how the I fund pricing works.

 

[mailmanusa]

Thanks for the responses. Back on the 17th of Aug I jumped out of stocks(L2040)and went to bonds. At this point it looks like I should have stayed in. I was looking at the I fund share prices today. When I got out on the 17th they were 20.11. Now they are 19.83. Thats a .28 difference. The domestic stocks are up since the 17th of Aug but the I fund is down. Now I am thinkin that a shift to I fund then wait it out till it climbs again might be a way to save face. How does that idea sound?

 

[SkyPilot]

Just be ready to absorb some volatility in the process. Many feel that we could see a substantial run-up by the end of the year. However, if you buy in now, you may see some dramatic peaks and valleys in the process of getting there. So, do a gut check before you jump in with both feet, and be ready to ride it out through some drops. Looks like a hi risk/hi reward proposition, but that is the nature of playing the I fund.

Good luck...

 

[Fivetears]

It's kinda like going out to dance with the cheerleaders at half-time at your first pro football game. Seems like a great idea at the time... until the cops show up. :nuts:

Thanks for the responses. Back on the 17th of Aug I jumped out of stocks(L2040)and went to bonds. At this point it looks like I should have stayed in. I was looking at the I fund share prices today. When I got out on the 17th they were 20.11. Now they are 19.83. Thats a .28 difference. The domestic stocks are up since the 17th of Aug but the I fund is down. Now I am thinkin that a shift to I fund then wait it out till it climbs again might be a way to save face. How does that idea sound?