Hello Everyone
Well, February is now behind us, and I am happy to report that the market uptrend continues. February performance (SP 500 Index) displayed the largest monthly gain (5.5%) on the index since October 2011. Coming out of a “sideways” January, this is welcome behavior.
The top performing fund in February was the S-Fund, although it is important to note that the C-Fund and the I-Fund also came in very strong. Additionally, allow me to highlight the fact that I have “remained in position” (in the S-Fund) since January 1, due to my analysis and proprietary system which reflected that the S-Fund was the best location to be in- even in light of the “sideways action” which we all frustratingly had to endure since approximately November 2014. Out of ten possible fund choices, to include the “safe haven” G-Fund (which I have no problem using in times of turmoil), the S-Fund was my choice, and I am pleased (and not entirely surprised) that this fund, as expected, was the ideal choice and top performer out of ten funds. Lets take a look at some charts, one with no comments, then one with comments:
Moving forward, it should be noted that the I-Fund may be the place to move to in the near future. This fund is rather sensitive to world economic issues and political turmoil, so I confess that I am a little “gun-shy” about this fund, in light of everything going on globally. I will keep folks posted on my decisions, however it is apparent that at least from a performance standpoint, I-Fund may potentially outperform the other funds in the next few months. At this point, “we are not there yet” and I want to wait until mid-March before I make any serious decisions on changing my TSP allocation. I remain 100% S-Fund for now.
The good folks over at Investor’s Business Daily are assessing the Accumulation/Distribution level of the SP 500 index as a “B”, out of A to E. This means that institutional investors such as mutual funds, hedge funds, retirement plans, are actively purchasing and investing (versus selling and exiting) in large cap stocks, the type which make up the SP 500 Index. I use this rating to “back up” my own analysis, and they are both in concurrence. In January, the ratings were a little weaker in the D+, C, and C+ range, but improved in February, which is also evidenced by the chart analysis above, reflecting an uptrend.
That is all for this update. In the “ask and you shall receive category”, please continue to refer your friends and colleagues to this site. One of my goals is not to necessarily beat the market, but definitely to not let the market beat us.
Thanks for reading, and again, I am 100% S-Fund at the present time.
– Bill Pritchard
