Hello All,
Long time, no see! As you old-TSPTalk timers know, I've been in a buy-n-hold pattern since shortly after the 2008 crash.
As the "buy-n-hold guinea pig" :ban:, these have been my returns since the crash:
2008: (I bailed to the (G) Fund on 22 Jan 2008, completely avoiding the crash.)
4.44%
2009: (I reentered the market on 20 Feb 2009. My last IFT was on 2 Nov 2009: 60(C) 40(S).)
4.95%
2010:
21.16%
2011:
-0.28%
2012:
17.14%
2013:
35.03%
2014:
11.24%
2015:
-0.35%
2016:
13.84%
2017:
6.97% (YTD)
Although TSPTalk.com's slogan is "Friends Don't Let Friends Buy and Hold", I've been quite satisfied with my buy-n-hold strategy over the past 9 years. Without contributing a cent, (because I am unable to) I have more than doubled my TSP account balance since I retired from the USAF on 1 Sep 2011.
I am now contemplating bailing to the (G) Fund because I sense that we are in for a rough summer. I could be wrong, though. But, the last time I felt this strongly about bailing to the (G) Fund was 8 months prior to the 2008 crash. And you must admit, we are overdue for a correction (and due for the Bear). The last correction was when the S&P 500 dropped 15% from Nov 2015 to Feb 2016. (It dropped only 5.40% during BREXIT, but gained it all back, and then some, within a matter of days.)
Our last Bear was Oct 2007 - Mar 2009. Here is some Bear history before that:
Mar 2000 - Oct 2002
Aug 1987 - Dec 1987
Nov 1980 - Aug 1982
Jan 1973 - Oct 1974
You can view more correction and Bear history here:
https://www.yardeni.com/pub/sp500corrbeartables.pdf
Unless we are repeating another 13-year Bull run (Dec 1987 - Mar 2000), we are definitely due for the Bear. But, as I said, I could be wrong and we could have 5 more years riding the Bull.
Should we believe what Warren Buffet said in Feb, ""We are not in bubble territory or anything of the sort..." ""Measured against interest rates, stocks are actually on the cheap side..." ???
Of course, interest rates
are on the rise. Expect another hike in June, possibly followed by another one before the year is out.
Source for Buffet quote:
Warren Buffett: Red-hot market not in a bubble, still looks 'cheap' - Feb. 27, 2017
In the meantime, I'll let you know if I decide to bail to (G) in order to preserve my overall
114% returns since 2008. BTW, compare my 114% overall returns since 2008 with some of the seasoned investors on this forum. Go to the AutoTracker history and add(subtract) their annual returns since 2008.
Did my buy-n-hold strategy beat them out?
I calculated the numbers of one very popular poster. His overall returns since 2008 was 55.59%. That almost convinces me to maintain my buy-n-hold strategy!:usa2:
Happy Investing and God bless. :smile:
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