The TSP and Chinese Investments

Sort by newest Sort by date
tsptalk

tsptalk

Moderator
Staff member
I don't see a problem investing in a broader international index, just not China. Since they tend to steal American Corporate information.
 
bmneveu said:
But cryptocurrency and marijuana in the S Fund is still okay!
Click to expand...

The only thing I know about cryptocurrency is that today you could be worth millions and tomorrow you are in the poor house. I have no problem with marijuana.
 
The great thing about the TSP is being Index all the time we get great diversification at very low cost, but I welcome the day when I can move money into an actively managed fund. Ruling out China, mary jane, or tobacco and alcohol is a personal investor choice we don't have now. It cannot be ESG for everyone all the time. As such, I keep my IRA money at Fidelity. I have done a reverse rollover back into the TSP to clean things up for future ROTH conversions.

I do oppose merging Social Security with TSP.
 
rangerray said:
Is the TSP invested in marijuana? I only ask because we got e-mail from headquarters specifically saying that government employees should not invest in marijuana.
Click to expand...

Yup, I hadn't thought of that till I read bmneveu's nice sarcastic smack. Nice bmneveu, very nice :laugh:

The 'S Fund' holds ALL US equities excepting those held in the S&P 500. Thus, we are buying whacky tabacy and crypto. Me thinks I now understand why the 'S Fund' overperformed - time for a correction!!!!

By the way, the 'I Fund' does NOT hold any Chinese equity/bonds. They are a 'developing' country, the 'I Fund' contains equities from Developed Ex-US countries (basically Europe and Japan).

On another note, I DO NOT want some politician slug making my choices. With our luck China will become a valuable and reasonable nation state when this slugs brilliant bill gets voted on and enforced. Or, maybe that will happen a week after the vote. Stupid idea. Anyone not want to invest in German or Japanese equities out there...
 
edfong said:
The great thing about the TSP is being Index all the time we get great diversification at very low cost, but I welcome the day when I can move money into an actively managed fund. Ruling out China, mary jane, or tobacco and alcohol is a personal investor choice we don't have now. It cannot be ESG for everyone all the time. As such, I keep my IRA money at Fidelity. I have done a reverse rollover back into the TSP to clean things up for future ROTH conversions.

I do oppose merging Social Security with TSP.
Click to expand...

I would oppose this as well. didn't know it was being talked about and not sure how that would be executed since TSP is individual money of government employees and social security pays essentially all Americans. did you have an article or information source to point to?
thank you.
 
RE: Marijuana; The majority of marijuana stocks are OTC (pink sheet) or ADR's that are not tracked on US indexes (READ "Indexes", not exchanges). There are a few, specifically the stocks in the REIT space that deal with marijuana properties, or the alcohol companies that have stakes in marijuana, but I'd be surprised if there were many pure play companies involved in the chemistry and medicinal distribution of marijuana.

RE: China; They'd need to add a whole new fund to TSP that tracks something like emerging markets. Again, most Chinese companies with the exception of YUMC trade as ADR's on US exchanges and are not included in US indexes.

Investing in C, S, I, G, F will never include most of the above unless the rules change.

Here's the methodology for inclusion in the Wilshire 5000 index. https://www.wilshire.com/Portals/0/analytics/indexes/methodology/wilshire-5000-methodology.pdf

To be included in the Wilshire 5000 Index, an issue must:

• Be the primary equity issue; a common stock, REIT or limited partnership;
• Have its primary market listing in the United States; and
• Not add bulletin-board or Pink Sheet issues. These issues are not included because they generally do not have consistently readily-available prices.
Click to expand...

A bit more detailed is the S&P Total Market Index methodology. https://www.spglobal.com/spdji/en/d...hodology-dj-us-total-stock-market-indices.pdf

See pages 5-6.
 
Google "Hassett-Ghilarducci White Paper", it is more than just a possible UNLIKELY fix for Social Security. I do think the three Board Members replaced by Trump wanted to increase diversification by adding China, by making the I Fund more like the world economy by siding with what is made available to 401k investors. So far, Biden has not replaced the Trump appointees but has made the recent suggestion for reviewing TSP choices.
 
Thanks for the idea, but the "Hassett-Ghilarducci White Paper" is about expanding a TSP-like savings vehicle to low income. I see nothing about China in it.

There's a thread that better relates to that paper here: https://www.tsptalk.com/mb/tsp-talk-news-etc-/36539-expanding-tsp-help-poor.html

Question is, if someone is "low-income", how are they going to be able to contribute to a 401k to begin with? The answer - you guessed it, just print money. I'm sure rangerray is going to love that proposition.

Many of the plan’s would-be beneficiaries pay little in federal income taxes today, so the cost in foregone taxes is smaller than one might think. The government match does cost more, but the government currently borrows at close to a zero percent interest rate, money which would be given to workers to invest in private capital that has a higher return.
Click to expand...

https://eig.org/wp-content/uploads/2021/03/Hassett-Ghilarducci-White-Paper-IWBI.pdf
 
Another reason why there is no reason to add China risk. Didi was one of the biggest IPO's of the year and one of the most anticipated foreign IPO's since Alibaba. Wall Street was blindsided by Chinese government decision to examine Didi's practices. Ant Group was shelved in November 2020 after the IPO fell apart.

Didi’s American depositary shares fell 20% to $12.49, wiping out about $15 billion of market value and taking the stock below the $14 price from its initial public offering. Beijing-based Didi controls almost the entire ride-hailing market in China and raised $4.4 billion last week in the second-largest U.S. IPO for a Chinese firm.

Over the weekend, China also moved against two other companies that also recently listed in New York, -- Full Truck Alliance Co. and Kanzhun Ltd., Ltd.
Click to expand...

https://www.bloomberg.com/news/arti...r-china-regulators-order-stores-to-remove-app
 
1. I’m not planning buying anything Chinese.

2. But if I wanted to, I don’t care what any Congress critter thinks- it’s NOT their money. It’s MY money now. F them. I should be able to, just like any other US citizen can.

3. If Chinese stocks are dangerous, the SEC and the Office of Foreign Asset Control should make them equally off limits to any U.S. investor- not just federal employees.

4. How come they fail to mention RUSSIAN company stock shares? THAT is a nation at war at the moment. Is it because the Russians give so much money to the NRA, which in turn funnels that Russian money into Congress critters coffers? https://www.politico.com/amp/story/2018/04/11/nra-russia-money-guns-516804


Sent from my iPhone using TSP Talk Forums
 
You must log in or register to reply here.

Similar threads

James48843
GOP Senator demand NO Mutual Fund Window
Replies
10
Views
1K
Boghie
Boghie
James48843
Most of Biden's TSP Nominees Are Free to Be Confirmed, Now That GOP Senators Have
Replies
0
Views
591
James48843
James48843
tsptalk
Bill to change TSP Mutual Fund Window
Replies
1
Views
4K
BPASDC
B
James48843
Rubio Escalates Attacks in Dispute Over TSP International Fund Changes
Replies
1
Views
3K
tsptalk
tsptalk
Back
Top