September 2020

Allocation Percentages for September 2020
F Fund

100%

C Fund

0%

S Fund

0%

I Fund

0%

August and July were amazing months for the C Fund and the stock market in general. I have generated significant returns in one of the most disruptive years on record, and I am confident the economy and the and our country will continue to recover. However, I am concerned. Most of you know I reserve investment in the F Fund for extreme situations. In most cases, there are strong indicators of an impending recession, stock market bubble, or other indicators to lead me to an extreme switch in investments. I have reached that conclusion for September. This market has been propped up by an incredible amount of Federal Reserve stimulus to keep the economy afloat while we deal with COVID-19. Once the pandemic has run its course, which I think will be rather soon, either through a vaccine or herd immunity, there will be little reason for the dramatic infusions of cash into the economy. The pillar keeping the market elevated will be removed. The presidential election also has me concerned. I will stay away from the politics. Rather what concerns me is the event itself and the ensuing aftermath (2000 comes to mind). The market hates uncertainty. In previous election years, we have seen negative returns leading up to the election; I expect this year to follow a similar path. In short, I am moving 100% of my allocation and new contributions to the F Fund as I think the potential reward of the C Fund is not worth the risk. I will keep a sharp eye out for changes in my assessment during September, and hopefully, market indicators of a return to the C, S, or I Fund will be strong.
           
  

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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