July 2019

Allocation Percentages for July 2019
F Fund

0%

C Fund

100%

S Fund

0%

I Fund

0%

We just had another amazing month with a return of over 7% for the C Fund and 6.8% for the S Fund. GDP numbers are strong despite "headwinds" in the underlying financials from durable goods orders to weak employment numbers in May. Driving the durable goods orders is Boeing, the US's greatest exporter. Boeing is not the first strategic US company to suffer strategic disruptions to it operations. General Motors and General Electric have also undergone dramatic downturns. While GE's fate is still up in the air (I think it will recover after 3-4 years and a restructuring plan), the US government made sure GM would not fail. Boeing will be in the same boat as GM and while there will be consequences to its failure to properly test and train pilots for the 737MAX, it will not suffer more than it has probably already suffered and therefore its impact on the market and its vast number of suppliers has already been factored into the market. Next issue to address is the trade war between the US and China. As I have mentioned in the past, the US has the upper hand in this fight. With a healthy GDP, room in the federal interest rate, and a more legitimate and transparent economy, the Chinese are going to eventually run out of fuel and capitulate to US demands. While the tariffs and counter-tariffs are unfortunate and it would have been nice to have resolved the war early, we are entering a new phase where China will begin to feel the real strain on both the reduced demand for its good as a result of US tariffs and its realization that it cannot survive without US food imports. Additionally, the US can lower its interest rates and maintain its growth organically, the worst possible scenario for Chinese exporters. I think the market is still going to remain strong for the year. Perhaps there will be a slight dip in the coming months as people lock in profits, but I am remaining in the C Fund at 100%. Keep investing!
           
  

TSP FUND QUOTES

Date L Income L 2025 L 2030 L 2035 L 2040 L 2045 L 2050 L 2055 L 2060 L 2065 L 2070 G Fund F Fund C Fund S Fund I Fund
2024-11-22 26.8071 13.8108 51.0235 15.4040 58.6345 16.1249 35.5088 17.9670 17.9648 17.9624 10.6429 18.6680 19.5294 94.1871 96.2559 42.6555
2024-11-21 26.7630 13.7847 50.8402 15.3435 58.3842 16.0512 35.3363 17.8624 17.8602 17.8579 10.5814 18.6658 19.5205 93.8581 94.6413 42.4370
Daily Change 0.16%0.19%0.36%0.39%0.43%0.46%0.49%0.59%0.59%0.59%0.58%0.01%0.05%0.35%1.71%0.51%
Month to Date 1.08%1.22%2.18%2.37%2.56%2.72%2.89%3.49%3.49%3.49%3.46%0.26%-0.33%4.74%11.13%-1.08%
Year to Date 7.64%8.67%12.8%13.65%14.52%15.26%16.02%18.82%18.82%18.82%0%3.92%1.6%26.66%24.85%6.16%
Details L Income L 2025 L 2030 L 2035 L 2040 L 2045 L 2050 L 2055 L 2060 L 2065 L 2070 G Fund F Fund C Fund S Fund I Fund
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