I promised to advise you if the market “hiccupped” wrong and today it did. All the indexes sold off and closed lower, on above average volume. This fact, coupled with the ongoing news (the markets action itself is enough justification to make me go to G-Fund) between both parties prompts this decision. I am concerned that any “agreements” formed prior to Oct 17, may fall apart at the last hour. As discussed in yesterday’s post, as this drags on, our overall reputation is at risk and this may be enough to send the markets further lower, even if we do get a last minute debt ceiling agreement. I wonder if Obama’s speech writer read my post last night…
It should be noted that on Thursday Oct 10, Treasury Secretary Jack Lew will testify before Congress regarding the debt ceiling. This may go well, it may go bad.
With that said, as of this evening October 8, 2013, I will be 100% G-Fund in my TSP Account, reflected via Contribution Allocation and Interfund Transfer.
The TSP site posts the S-Fund’s return YTD as being 27%. The S-Fund is the top performer on a YTD basis, and this site has advocated S-Fund almost the entire time. While we were not in the S-Fund the entire year, have taken some protective moves into G-Fund earlier in the year, my point is that let’s take some of our gains and keep what we have.
Again, I am now 100% G-Fund in my personal account and my opinion is that this is the prudent move, in light of the market’s behavior and overall political climate which exists. You may see some “uptick” days over the next week or two but my opinion is that the safety of G-Fund is best for now.
Thank you for reading…
– Bill Pritchard
