Investing outside of the TSP

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board Investing outside of the TSP

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    Mr. Snrub

    I’m already contributing the maximum $18,000 to my TSP, so I’m looking for other investment opportunities with the rest of my disposable incone. Anybody have any good stock picks for 2017?

    TS Paul

    The market is so hot, there aren’t a lot of individual stocks which really appeal to me right now and none which I am moving into. A few random thoughts which occur to me today:

    I think oil still has a lot of upside even after the recovery we have seen since the lows of 2015. The nice things about the big majors is that they also pay some nice dividends, so I will have a steady stream of income even if it takes some time for the oil market to sort itself out.

    A couple of other high dividend payers which also have some growth potential are REITs: APLE (which owns a lot of hotels) and SNH (which owns a lot of nursing homes). I don’t currently own either of those.

    Big retail banks (BofA, Wells Fargo, Citi, etc) should do well with interest rates moving up. I feel like I have enough exposure between the ETFs I own and my Berkshire Hathaway, so I haven’t taken a hard look at at picking one or two.

    Apple has had a big run over the past year, but I think the iPhone 8 is going to create a super cycle for upgrades and there will be a deal struck which will allow them to repatriate a lot of their overseas profits. Some of that is priced in. I own a lot of AAPL – it is my single largest individual holding (not because it started that way, but because it has done so well since I bought it and there has never been a time I felt I should take some of my profits out and just roll them into an index ETF).

    I think ESRX is a great company which has been beaten up recently and should come back. A P/E of 12 on a company which has shown consistent growth seems unreasonably low and I expect the stock price to be back in the 70s before too long. I own a little ESRX, and will probably double that position as I have some cash come free.

    None of those are recommendations – just random thoughts and a little bit about what I am doing.

    The TSP Allocation Guide

    Mr. Snrub

    Good to know, thx.

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