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
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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