In case you have not heard, there are about 5 companies in America driving the markets. They now make up 28% of the SP500 index (TSP C fund)…
TSP Charts
TSP Funds: Instability
Use common sense and look around. Earnings and cash flow determine stock prices after the corporate buybacks go away. The Fed is screaming DANGER and yes they “temporarily” provided liquidity (printed money) to halt the financial sell off. But they can NOT stop the economic damage that matters in the long run.
TSP Allocation Guide Coronavirus Update
The funds have not changed, my strategy has not changed but the investing environment has and so must your allocations if your retirement nest egg is to survive. Denial is in the air everywhere we look. Don’t follow the herd.
TSP Advice: Don’t Listen to Advice
We have NEVER experienced anything like this in modern history. So NOOOO, you can not use history as your guide for long-term investing as suggested in this article and many others over the years…
TSP Charts: Running on Repos
… last September when the repo market failed (overnight repo rates jumped to 10%), our fearless money-printing Federal Reserve stepped in and loaned the repo borrowers whatever they wanted. And they kept on. And they STILL are.
TSP Funds: the Tesla Bubble
Now with a market value like that, some are asking surely they will include Tesla in the SP500 now. It sits in the non-sp500 companies (TSP S fund) as the largest company. But the managers of the SP500 have a little rule that has and will keep it out.
TSP Charts in Review
My assessment remains that we are witnessing a colossal tug-o-war between free market price discovery and central bank interventions. The central banks are winning but each round requires much greater effort – meaning purchases of financial assets with money created out of thin air.
TSP Funds: Perspective October 2019
Today the SP500 (TSP C fund) is below its August 2018 high and the TSP S fund is 10% below its August 2018 high – distribution, distribution, distribution. Market tops take time. Secular market tops aided by central banks take longer.
TSP Funds: Wake Up Time
Don’t be fooled by short-term pops in price due to plunging interest rates. We it comes to fixed income funds, past performance can no longer be achieved again. We are simply accelerating to the point of no returns in the US bond market.
TSP Charts: Quicklook August 3rd 2019
There is nothing like another “raising tariffs” tweet during a global industrial recession and busted interest rate expectations all in the same week to push the market off the top of its price channel. Let us hope speculators don’t start… Read More ›