- This topic has 3 replies, 3 voices, and was last updated 3 years, 7 months ago by Scott.
July 20, 2016 at 6:56 pm #19418alamParticipant
feeling like I did 🙁
thx!July 20, 2016 at 7:05 pm #19419TS PaulParticipant
Funny, all last year when the TSP C Fund was doing better than the S Fund, I felt like I hadn’t dumped it soon enough.
From a business cycle investing perspective, large caps (the C Fund) is the right place to be right now. But that certainly doesn’t mean that we won’t see periods of time (sometimes extended periods) during which the S Fund outperforms the C Fund.
I’m not sure what period of time has you concerned, because that doesn’t seem to be the case right now – the C Fund has outperformed the S Fund by about 6% over the past 12 months, and by about 1% so far this year.
The TSP Allocation Guide www.TSPallocation.comJuly 20, 2016 at 7:31 pm #19420alamParticipant
TS Paul, thanks! I have been following your model for about 5-6 years — with my own personal and minor twist that in my view is insignificant, e.g. my current allocation and distribution is C/I/S 75/15/10%. I posted the question as I’ve seen the price of the S share steadily increasing since moving most of my S shares to C.
BTW, thanks for the good information you provide!
alamOctober 31, 2016 at 3:59 pm #20728ScottGuest
This speaks to a lingering question I have been having, and I think it is a rather basic one: I was reluctant to move both contributions and distribution out of S when it was performing poorly, as I felt it was capitulating the losses. I realize that there was no reason to leave contributions in S, but I was more concerned with my account distribution. With a reasonable expectation that the S fund would rebound, aren’t you purchasing shares in that fund at a reduced rate? Once those share prices return, aren’t you better off in the long run? Isn’t it better to wait until the fund is performing well before changing your allocation?
Thanks in advance!
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