Interesting look at C and I Funds

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Aitrus
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Re: Interesting look at C and I Funds

Post by Aitrus »

Doom and gloom. TSPaul over at tspallocation.com has a different take on where the PE is at:
http://www.tspallocation.com/march-2017-tsp-allocation-business-cycle-analysis/

Is the Market in a Bubble?

The financial media has turned into reality television, and reality TV needs conflict to keep viewers watching. The theme this month seems to be trotting talking heads out who will say the market is overvalued to the point of being in a bubble and we will see a huge collapse when that bubble bursts. That’s an easy one, because when it doesn’t happen they can double down and talk about how the market has gotten even bubblier and the impending crash is going to be that much worse.

I think the market is expensive right now, but certainly not in bubble territory. When we are in a bubble, stock valuations aren’t based on anything except momentum. Right now when you look at where the Price/Earnings ratio is of the S&P 500 (the TSP C Fund) calculated with estimated earnings per share for 2017, you get a number just a shade over 18. That’s above average (average is 15.64), but not even close to bubble territory.
Seasonal Musings 2022: viewtopic.php?f=14&t=19005
Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus

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ObamaSucks
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Re: Interesting look at C and I Funds

Post by ObamaSucks »

"And we are not in bubble territory or anything of the sort." - Warren Buffett, Feb 2017
I will bleed on the American flag to make sure those stripes stay red.- Brassel, MI3

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cswift01
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Re: Interesting look at C and I Funds

Post by cswift01 »

Aitrus wrote:Doom and gloom. TSPaul over at tspallocation.com has a different take on where the PE is at:
http://www.tspallocation.com/march-2017-tsp-allocation-business-cycle-analysis/

Is the Market in a Bubble?

The financial media has turned into reality television, and reality TV needs conflict to keep viewers watching. The theme this month seems to be trotting talking heads out who will say the market is overvalued to the point of being in a bubble and we will see a huge collapse when that bubble bursts. That’s an easy one, because when it doesn’t happen they can double down and talk about how the market has gotten even bubblier and the impending crash is going to be that much worse.

I think the market is expensive right now, but certainly not in bubble territory. When we are in a bubble, stock valuations aren’t based on anything except momentum. Right now when you look at where the Price/Earnings ratio is of the S&P 500 (the TSP C Fund) calculated with estimated earnings per share for 2017, you get a number just a shade over 18. That’s above average (average is 15.64), but not even close to bubble territory.


Dear Aitrus,

Yes, I agree with you. My intention was to read about the difference between the C and I Funds which I think were well explained in that article. Unfortunately, as you point out, that article's gist was about doom and gloom.

I also am so tired of the daily boom vs. bust news cycle. Case in point, 2 days ago one of the websites I frequent stated the economy was in a down spiral. For 2 days, there were some losses in the equities. As Wednesday hit, they said that a bull market was around the corner. Could you imagine someone actually believing all that fluff?

I go with Warren Buffett's comments as our Obama friend just posted.

Thanks,

Me

Tiffany
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Joined: Mon Dec 19, 2016 9:18 am

Re: Interesting look at C and I Funds

Post by Tiffany »

ObamaSucks wrote:"And we are not in bubble territory or anything of the sort." - Warren Buffett, Feb 2017


I saw that Buffett interview too. He made some great points. The one I liked best was the his comments about timers. Something along the lines of waiting for a good time to get in or "get back in." Waiting for that ever elusive "pullback" to jump back in the market. Buffett said "it's very good to be in for the rest of your life."

Peaty
Posts: 13
Joined: Fri Jan 27, 2017 9:39 pm

Re: Interesting look at C and I Funds

Post by Peaty »

Tiffany wrote:
ObamaSucks wrote:"And we are not in bubble territory or anything of the sort." - Warren Buffett, Feb 2017


I saw that Buffett interview too. He made some great points. The one I liked best was the his comments about timers. Something along the lines of waiting for a good time to get in or "get back in." Waiting for that ever elusive "pullback" to jump back in the market. Buffett said "it's very good to be in for the rest of your life."


Nice inspirational post Tiffany.

By the way I was baffled as to why maui21ice dinged you on rep points. I clicked the little red square below your reputation points and his comments said something about "harassing and discriminatory claims". Of all of your 4 whole posts, nothing I saw justified his beef.

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Asiana
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Re: Interesting look at C and I Funds

Post by Asiana »

Tiffany wrote:
ObamaSucks wrote:"And we are not in bubble territory or anything of the sort." - Warren Buffett, Feb 2017


I saw that Buffett interview too. He made some great points. The one I liked best was the his comments about timers. Something along the lines of waiting for a good time to get in or "get back in." Waiting for that ever elusive "pullback" to jump back in the market. Buffett said "it's very good to be in for the rest of your life."


Tiffany you have done well on Fantasy TSP. Nice gains, hope your success continues. :)

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SamCooper
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Re: Interesting look at C and I Funds

Post by SamCooper »

ObamaSucks wrote:"And we are not in bubble territory or anything of the sort." - Warren Buffett, Feb 2017


LOL...love your username. :lol:

Keep quoting Buffett. Seems he knows a thing or two about investing. :mrgreen:

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USA
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Re: Interesting look at C and I Funds

Post by USA »

Aitrus wrote:Doom and gloom.


Exactly!

Every time you turn around you see another negative outlook. Yet in reality, people are making HUGE sums of money in the market. Corrections, pullbacks or whatever you want to call them are inevitable. I love them because they mean we're eventually headed higher. Be in it and stay in it!
MAKE AMERICA GREAT AGAIN

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Fund Prices2024-03-28

FundPriceDayYTD
G $18.15 0.05% 1.05%
F $19.08 -0.06% -0.74%
C $82.21 0.11% 10.55%
S $82.43 0.30% 6.92%
I $42.57 -0.24% 5.95%
L2065 $16.38 0.02% 8.37%
L2060 $16.39 0.02% 8.38%
L2055 $16.39 0.02% 8.38%
L2050 $32.73 0.01% 6.95%
L2045 $14.91 0.02% 6.58%
L2040 $54.38 0.02% 6.22%
L2035 $14.34 0.02% 5.79%
L2030 $47.67 0.02% 5.38%
L2025 $13.15 0.03% 3.43%
Linc $25.61 0.03% 2.82%

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