Transfer 9/30 for 10/01/04

[tsptalk]

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smine wrote:

Whoever told us told us to go to CNN.com and look at world markets has me doing just that. All the world markets were down arrows yesterday, so I went 30%; today they are all up and a good amount was made. Following my own advise, I stayed big time in S and dumped C for I. Did well; now retreating 70% to G to count my money. Never had this much in TSP!:^

I hate to call it fun, but it is to me also. When you can make gains in a month, like smedlap has in November, that some folks who sit in the G fund make in a year, that is fun. But we know the market doesn't always go up and that the G fund plays a role in our strategy when the time is right.

Just remember the market does like to humble us just when we are feeling the most confident. :shock:

 

[vectorman]

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Tom, Will it be mostly green arrows during the bull mkt? How will the G fund play that role you were talking about? This is my first bull market and I don't know how to make full use of it, help! I also left a couple of questions at the new member site, Thanks

 

[tsptalk]

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vectorman wrote:

Tom, Will it be mostly green arrows during the bull mkt? How will the G fund play that role you were talking about? This is my first bull market and I don't know how to make full use of it, help! I also left a couple of questions at the new member site, Thanks

During a bull market the trend is up. The market still breathes (goes up and down) but it should be higher down the road. You can have real bad days during bull markets. It's usually not just easy money. Just when things look their worst is when things will get better. And when everything looks peachy and the money is being made easily, the market will pull the rug out from under you.

Getting in and out, or timing the market, is more of a battle against yourself than the market. You sometimes have to fight the obvious urge and go against the majority.

If you made a ton of money and it seems like the market is never going to go down, it probably will. That's when you want to hide in the G fund for a bit. If the market is falling like a rock and you think to yourself,this is nuts, I'm never putting money in stocks again, that is when the market will start turning up.

There's a reason for that which I'll try to get to, along withyour other questions, tomorrow. Time for bed.

 

[Mike]

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I'm waging an epic battle against myself right now - and I'm winning.