For those of you who follow my "deficit" tracking updates, today the
I Fund met with its obligation to keep the YTD differences between
the (I) Fund and the EFA close enough to reflect one another. The
following is how this played out over the last 7 market days;
4/23 .13 tsp cents
4/24 .20 tsp cents
4/25 .12 tsp cents
4/28 .10 tsp cents
4/29 .01 tsp cents
If you recall, tracking this information for over two years have resulted
in the conclusion that each fund aspires to be within "single digits" while
reflecting each others returns YTD. As of now, the (I) Fund is down -4%
YTD while the EFA is down -3.95% YTD. The difference between the two
is now at .05%. By taking the updated share price of the (I) Fund $23.77
and multiplying it by .05% translates into a .01 tsp cent deficit.
Why is this important ? On 4/24, If I believed that it was a good time to
enter into the market from the (G) Fund, I would have taken notice that
the (I) Fund was at a very high deficit area. That has meant higher gains
or lower loses, depending on what the market did the following day, when
compared to the EFA. After researching all the data I could get my hands
on concerning the next day's trading and I felt strongly about a possible
rebound in the OSM, the deficit would make an IFT into the (I) simply
irresistable. The downside looks minimized and the upside looks better.
So there you have it, one of the tools I use for timing the allocation
selection within the TSP. I have mentioned (in detail) about my tracking
and results since the start of this thread. I think I'll give it a rest for now.
If anyone wishes to know the current deficit between these to funds, its
quite easy to figure out. Or, you can simply ask me.
