Why is the F fund considered safe

[Shaggy]

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I read people saying you can go either into the G or F fund for security with the G fund seeming to perform better. It seems to me the F fund fluctuates as much as the others. Isn't the F fund Bonds that are good to be in some times and not in others? Sorry if the question seems dumb, just trying to learn.

 

[cowboy]

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Shaggy wrote:

I read people saying you can go either into the G or F fund for security with the G fund seeming to perform better. It seems to me the F fund fluctuates as much as the others. Isn't the F fund Bonds that are good to be in some times and not in others? Sorry if the question seems dumb, just trying to learn.

There is no dumb question on this board. I play the F fund some and what I like about it is this. Last week when I got on ol Firecracker he gave up $.02 but he don't quite behave himself all the time and you can lose just as easily. That is why many run to G instead but I do know if it looks bad for stocks Ol Fircracker starts to pop! Example is April if you were in G you gained .03 so far this month or a .0027 gain but if you rode Fircracker he would of gained you .0096. Not too shabby, Shaggy, if you play him in the right month. So to me if you think the stocks are going down the bonds usually respond.

 

[Shaggy]

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Yea I knew that Bonds were better when stocks were down, I just couldn't fiqure out why people were referring to the F fund as a haven or garantee return. If the market were to change it could turn into a losser quickly. Thanks for your response, everything helps.

 

[Spaf]

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Shaggy wrote:

I read people saying you can go either into the G or F fund for security with the G fund seeming to perform better. It seems to me the F fund fluctuates as much as the others. Isn't the F fund Bonds that are good to be in some times and not in others?

By risk, the G fund is about 100% safe. F fund would be next. Bonds are fairly safe and are used to counterbalance stocks. Bonds generally do well when interest rates are falling, and generally do not so well when rates are rising. However, there are exceptions to the rule. From April 8 to April 20, the F fund sparked up a bit. From Jan 1 to now the F is up 0.07, G is up 0.14.
I guess what it means. If a down cycle is pictured for the equities (C, S, I). It's best to high-tail-it to G or F.

Rgds! :^ Spaf

 

[cowboy]

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The F fund if it goes down will move several cents or more and than set for a week or two possibly than make another move.This is kind of irritating if your on the wrong side of him and the stocks make a move. It is a safe haven as a rule if you play him short term but can sour on you. It is often a play that many will take when G has just paid it's penny every two weeks.