Thrift Savings Plan Allocation
Hey folks, hope you all had a very fun and safe July 4th. I know here at Emerald Chase we talk a lot about fast money (trading). So I am very pleased and excited to begin sharing with you a little something from the investment realm; my Thrift Savings Plan (TSP) allocation. This a free service via blog which we will try to feature bimonthly.
How many of you out there just contribute to your TSP every month and make no attempt to adjust her according to current and projected market conditions. Just because the TSP is broken into funds which nestle numerous securities together appropriately does not mean you should set it and forget it. Without proper allocation your portfolio can suffer from not capitalizing on gains the market is trying to pay you while being underweight certain funds at certain times. This is like telling the market "hey I rather forego the money you would have earned me because I rather commit my principal to a fund that is not performing as well." You have already committed the money from your purse so be wise about structuring your fund according to market conditions so it can be all that it can be. Who has the time or zeal to do the research? We do! So stay tuned to hopefully maximize your TSP gains and minimize losses in times of turmoil as we are looking ahead for you.
Our sentiment at Emerald Chase is: we are overall bullish on the stock market rally and here is why. US Treasury bonds (10yr note) yield is low and has been moving lower. Earnings have been looking strong in big name companies. Volatility has been quite low and stable over the last quarter (meaning investors on Wall Street are not fleeing from investing in companies). We also recently hit full employment. Also Citigroup just put out that they speculate that global GDP will grow a bit over three percent over the next year. For the aforementioned factors I have recently reallocated my TSP funds.
I am overweight Common Stock (C fund) which basically means I am bullish S&P 500 which is a market value weighted index so as stocks increase in price so does this index. I am underweight G fund which means I'm bearish bonds. Fixed Income; why bother unless you are an elderly truly living off of fixed income. As you can see in the above pie chart I do not have all my eggs in one basket but you can say that my largest basket I own is trying to catch the money marked "C", which is where we are today. If you do not know how to manipulate your allocation please feel free to contact us. Thank you for reading and as always we wish you the best of options & opportunities and ...I am an Emerald Chaser.
