Thinking about moving to the G Fund through Interest Rate Hikes? Opinions?

[chadbixby]

I am going back and forth on whether to transfer all of my TSP over to the G fund and wait out the imminent rate hike(s). I know the answer should be to "leave it alone and let it ride", but I am interested in knowing what everyone else's thoughts are and what their plans are for these upcoming rate hikes? I have read that rate hikes do not always mean a negative impact on the market, but I have also read that it indeed will.

Just trying to get everyone's opinions on their thoughts and maybe what their plans are?

Thanks in advance!

 

[Bullitt]

Nobody knows what will actually happen with rate hikes, but right now everything you read about is already factored in to bond markets so it will take an outlier event to change things. The fed may not have to do anything after jawboning bond rates higher already and the big secret is we can't afford to service debt at rates over 2%.

I'd be very careful with making market bets 100% in either direction. The time for that was around Christmas during the media frenzied, "Santa Rally", and right now you'd have to make a decision for when to get back in which is equally hard.

Inflation will take care of itself as this stimulus money continues to dry up. There will be no other option for most but to go back to work.

 

[wavecoder]

No idea if Powell will even do anything, he's proven to be spineless so far. But history says rate hikes are usually bad for the stock market. Though I don't think anyone without insider info can tell you what exactly the right move is. I personally switched to defense last month in my TSP, and today on my brokerage acct, though that has nothing to do with rate hikes. It could go either way but I'm predicting a volatile ride

 

[chadbixby]

I appreciate the feedback! I also agree that xmas time was the time to make that change and that making the decision to get "back in" if I pull out will indeed be equally hard. Decisions... My gut feels that the current situation is only going to get worse, so I am leaning towards moving it temporarily to wait it out, but who knows!

 

[chadbixby]

But history says rate hikes are usually bad for the stock market.

Thank you for the reply! I have heard it both ways (although personally I also feel that it will be bad for the stock market, but really, I know nothing). I am leaning towards defense at the moment as well, and you are right, nobody can predict any of this... but I have this bad feeling in my gut that says things are only going to get worse in the interim. Appreciate the feedback!