Sarah wrote, "Do what allows you (and your gut) to sleep at night."
It seems to me that those who choose to make 100% moves on a given day need to understand why they are making that move and why on that particular day. Then they have to accept the inherent risk of trying to time the market. Especially if they intend to hold that position for a good portion of a year.
Trading it all one day either way could easily result in a 1% difference in either direction. As we just saw with the S Fund, even in this meandering market a few weeks difference on the day of a 100% move can result in a 6% difference or more (7.4% is S versus 1.4% in F since 8 March).
Of course, these are all paper gains or losses until we start withdrawing funds. But a few big mistakes or lucky breaks along the way can make a dramatic difference in the end result. Picking which one fund will be the next winner and picking the best day to abandon the previous choice aren't easy.
For me, holding a mix of 3 to 5 TSP Funds funds at a time and making well informed, more modest and frequent adjustments among them (a few times per year as needed) has been a less risky alternative.
I certainly don't have the best performance over a given period, but my long term result has been good so far. I find this approach far more gratifying and engaging than say simply buying and holding one of the L-Funds. And for me its a lot lower stress than picking the right day to sell and buy 100% of any fund then hold on tight for a long time to see the move paid off or not.
It might not be for everyone, but like Sarah says, it allows me to sleep at night. Good luck to all and have a safe and fun Memorial Day weekend.
Jim
On Fri, May 27, 2016 at 8:02 AM, sarah_oz@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:
Do what allows you (and your gut) to sleep at night.
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Posted by: JM Bud <jmbud2@gmail.com>
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Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.
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