February 2020

Allocation Percentages for February 2020
F Fund

0%

C Fund

100%

S Fund

0%

I Fund

0%

One word; amazing. Just when Brexit actually becomes official, the USMCA is signed, the Chinese-US Trade war starts to thaw, and the impeachment of President Trump will result in nothing but political theater; we get the Coronavirus. By all accounts, this is a story that is providing headlines on a daily, if not hourly, basis. Nothing is scarier to the public than a virus we know nothing about, and it is going to drive the markets for the next few weeks at least. The impact to the world economy is certain to be seen in world GDP numbers and airlines are bound to suffer with flights already being cancelled and non-US travelers coming from China facing a quarantine when they arrive in the US. While all this sounds dire, I'm not so sure the impact will be significant enough to alter my investment strategy. I was in the C Fund for the month of January, and although the market took several big hits, the C Fund was flat. Yes, you can compare the C Fund to the F Fund and Monday morning quarterback the returns in the F Fund, but the TSP does not work like a normal stock and cannot be traded in a reflexive way. We must take the long view on the market and the economy. The price swings we have seen in the market are the result of economists trying to estimate the impact to the economy. They have agreed the impact is somewhere between zero (Commerce Secretary) and -0.4% (Goldman). Most of the economists have also agreed that a recovery should take place in Q2 so long as the pandemic burns out in the next 1-2 months. I'm still in the C Fund for now. 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
2025-03-28 26.8594 13.8120 50.1902 15.1042 57.3059 15.7146 34.5059 17.2790 17.2769 17.2747 10.2384 18.9577 19.9738 88.4507 82.3925 44.2564
2025-03-27 26.9686 13.8746 50.6826 15.2667 57.9789 15.9125 34.9707 17.5702 17.5680 17.5657 10.4107 18.9555 19.8635 90.2289 84.2106 44.7319
Daily Change -0.4%-0.45%-0.97%-1.06%-1.16%-1.24%-1.33%-1.66%-1.66%-1.66%-1.66%0.01%0.56%-1.97%-2.16%-1.06%
Month to Date -0.82%-0.94%-2.24%-2.49%-2.74%-2.95%-3.16%-3.86%-3.86%-3.86%-3.86%0.33%-0.18%-6.17%-7.59%0.96%
Year to Date 0.44%0.37%-0.51%-0.66%-0.83%-0.97%-1.12%-1.73%-1.73%-1.73%-1.72%1.09%2.54%-4.82%-8.61%5.63%
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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