Stretch's Account Talk

[stretch]

Personally, I am very new to this game, but I feel the worst of the economy woes are behind us. I, therefore, intend to keep my money in the more aggressive C, S, and I Funds. If I notice a serious downward trend (that doesn't mean a daily drop!), then I will move them to the F Fund. I consider the G Fund to be a complete waste of time!

Thanks for reading, Stretch

Current allocation: 100% S Fund since Jan 01, 2006

Disclaimer: In no way do I claim that my allocation is the best strategy. The above thoughts are strictly opinion and should be considered as such.

 

[Birchtree]

Holding the bag.

Stretch,

This was posted previously - but you should be aware.

The R2K cumulative AD line has been behaving similar to the NASDAQ AD line for the past year, glaring evidence of shrinking participation in the small cap arena. Being all alone in the S fund at these levels leaves you vulnerable.

One sign of an older bull market is evidence of money flowing out of the smaller caps and into the larger caps. There is evidence of healthy and broad-based liquidity infusions into broad based larger cap stocks, suggesting following the current consolidation phase, we will likely see higher prices ahead for the large caps. If you don't have much money tied up then let her ride for the experience - but you may end up holding an empty bag. I still own a small cap fund that I've been riding since the lows of 2002 - but there will come a time to lock the gain - just not yet. Stay vigilant.

Dennis

 

[stretch]

Thanks mate! That is good info. Just wondering though, would your advice had been the same this time last year? I only ask because I see that the S Fund made over 10% for the year, which was better than many did. I'm kind of scared to move my money around too much, as it seems alot of folks had bad luck with that.

 

[Birchtree]

It's all in the sacrifice

Stretch,

I've been dollar cost averaging the C fund for a good while - my sacrifice to acquire as many shares as possible rather than to make as much money as possible - all good things take time. I use my TSP account to concentrate my positions because I have other holdings in other places which in effect allows me diversification - but there is only so much money to go around. My objective this year with the C fund is for a gain of at least 32% - I'm dead serious about that - the time for payback has arrived IMHO. Call me a raging bull, because that is what I am when it comes to the C fund. I'm contrary in opinion regarding the potential of the S and I fund - side ways action. I'm also bullish on the F fund - but one has to be early to catch the ride.

Dennis

 

[stretch]

I hope the C Fund works out for you! I believe that if the C Fund gets 32%, the S Fund will do well also, even if only 20%. I'm okay with 20%; I'm not greedy.

Stretch

 

[Machinist Mate]

I like it stretch.Simplicity is the key.You can make a person dizzy with to much information.

 

[cdifrances]

Hello to all of you TSP enthusiasts. <grin> I'm pretty much of a coward, and agree with Stretch that the G is a waste of time, but I don't want to lose my shirt, so I put 80% back in G and 5% each in F, C, S and I. I-Fund is dropping so rapidly that I'm considering moving it and the F fund to C and S which are faring somewhat better. I hate the F Fund. It's never done anything since its inception, one step forward, then three steps back. C and S will get 10% each. Hey, we can only hope, no?