February 2022

Allocation Percentages for February 2022
F Fund

0%

C Fund

100%

S Fund

0%

I Fund

0%

Well, that was an ugly month. I am grateful for the slight recovery today. When all Funds, except the G Fund of course, are negative for the month it is disappointing and tempting to move money to the G Fund. However, as I have stated countless times, money in the G Fund is an instant negative return due to inflation. So, if I can't put my money in any fund without losing money, I will place it in the fund with the highest reward vs risk potential. In this case, the C Fund is still the strongest of all the funds. Obviously, there are many factors impacting the market. The strongest of course are the inflationary pressures impacting everything from milk to used car prices. The cause of course is hotly debated. Some claim quantitative easing, others COVID recovery, but the fact is it must be controlled. The Federal Reserve is in a tough spot. They only have a few tricks up their sleeve to help mitigate both recessions and inflation. To fight inflation, they MUST raise interest rates. We have had very low rates since the Great Recession and the money supply has more than doubled since COVID started. With the velocity of money remaining relatively low during COVID the increase in the money supply was less impactful, but with a return to normal underway, any slight uptick in velocity is magnified and inflation is the result. So, the Federal Reserve must raise interest rates to bring the money supply down; however, during weak economic periods, of which we are in one, this can cause a recession. So, the market is trying to figure out which evil the Federal Reserve will choose (hint, they have to bring down inflation) and when. I think we will continue to see several rough months as this is carefully managed AND messaged but trying to time it is impossible. Short term, I think all funds will have more negative months than positive months, but in the medium term (6-9 months), there is likely to be a return to more stable months, if a recession is avoided. Keep calm and keep investing!

           
  

TSP FUND QUOTES

Date L Income L 2030 L 2035 L 2040 L 2045 L 2050 L 2055 L 2060 L 2065 L 2070 L 2075 G Fund F Fund C Fund S Fund I Fund
2025-07-17 28.0658 54.4326 16.4835 62.9289 17.3481 38.2948 19.5325 19.5301 19.5276 11.5736 10.1096 19.2096 20.0723 100.1890 94.7571 49.6344
2025-07-16 28.0188 54.2374 16.4188 62.6609 17.2692 38.1097 19.4184 19.4160 19.4135 11.5059 10.0505 19.2073 20.0756 99.6565 93.6717 49.4016
Daily Change 0.17%0.36%0.39%0.43%0.46%0.49%0.59%0.59%0.59%0.59%0.59%0.01%-0.02%0.53%1.16%0.47%
Month to Date 0.39%0.69%0.73%0.78%0.82%0.87%1.1%1.1%1.1%1.1%1.1%0.2%-0.93%1.54%2.94%-0.18%
Year to Date 4.95%7.9%8.41%8.9%9.32%9.74%11.09%11.09%11.09%11.1%0%2.43%3.05%7.81%5.11%18.47%
Details L Income L 2030 L 2035 L 2040 L 2045 L 2050 L 2055 L 2060 L 2065 L 2070 L 2075 G Fund F Fund C Fund S Fund I Fund
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