I-Fund Analysis

[managingts]

I-fund is skyrocketing these days. I wonder if anybody has done an analysis or something like that for I-fund. I was considering a transfer this weekend to I-fund instead of S but I don't have concrete/strong gut feeling about I fund. Anybody?

Thanks

[skiehawk11]

Essentially, QE in Asia and Europe. Dollar has been weakening since the market is determining that Fed won't raise rates until September. So a weakening dollar plus QE means EFA is booming. Although it looks like the dollar may be strengthening/going sideways at the moment. Which means easy money policies in Asia and Europe will have more of an affect on EFA. That's my opinion.

[dcramer29]

Quantitative Easting in the Eurozone. Thats all the analysis you need.

[skiehawk11]

Quantitative Easting in the Eurozone. Thats all the analysis you need.

I disagree. You need to account for currency fluctuations. If an investor doesn't, they'll get burned badly. I have demonstrated the importance of this in past posts.

[Pocono13]

Quantitative Easting in the Eurozone. Thats all the analysis you need.

I disagree. You need to account for currency fluctuations. If an investor doesn't, they'll get burned badly. I have demonstrated the importance of this in past posts.

Ditto to that.

[managingts]

Do you guys think that it's a good step going to I fund? I'm kinda worried that the I-fund is nearing it's top and comes back down fast.

[RGEN]

I stay away from the I fund. Too many moving parts, most of which I do not understand.

[weir003]

I thought the I fund closed up about a half a percent yesterday?

[Racerx919]

It did, what’s the consensus on the ‘I’ fund this week, month! It certainly looks like there is some room for upward growth.

[ray.etf]

The momentum of the "I" Fund is waning of late, as is that of the "S" Fund, based on time weighted tracking. Take a look at the Early Warning charts in the latest newsletter on [url]http://www.tspradar.com/tsp-radar-newsletter-april-3rd-2015/[url]. Both are well above a point where re-allocation out of them should take place. Remember that both are more risky and more volatile than the "C" Fund so ask if they fit your risk tolerance strategy.

[rlinehan]

WOW!
That's one amazing radar!
How, by the way, is the C Fund doing on that sucker?
Shooting the lights out?
Are you asking viewers thereof if the C fits "your risk tolerance strategy"?
HOW 'bout the F?
Is IT burnin' the barn down?
Then, the G's the recommendation, right?
If not, WHY not?

[rlinehan]

"You need to account for currency fluctuations. If an investor doesn't, they'll get burned badly. I have demonstrated the importance of this in past posts."

No you have NOT!

What you HAVE demonstrated is gross ignorance of the issue, as here.

HOWEVER, THAT is PRECISELY why one should do as you do.

Unlike you, though, RGEN is at least honest: "I stay away from the I fund. Too many moving parts, most of which I do not understand."

Amen!

And I certainly wouldn't recommend that ANYONE go WHOLE-HOG into the I Fund, as clueless people here do with the S -- which they don't understand, either!

If you're going to go WHOLE HOG, do the G!

AND ADMIT that you have Zero Clue Re ANYTHING!

Misproduced, misread, and misunderstood charts do NOT constitute "charting" -- but ignorance!

YEAH!

STAY AWAY from the I Fund!

And the S, C, and F, as well.

The G is safe.

STAY there!

[skiehawk11]

rlinehan,

It seems that no matter how I try to prove it, you simply refuse to believe that currency fluctuations need to be accounted for when dealing with the I Fund.

In fact, tsp.gov blatantly states this in the description of the I Fund.
https://www.tsp.gov/PDF/formspubs/IFund.pdf

Verbatim:
* There is a risk of loss if the EAFE Index declines in response to changes in
overall economic conditions (market risk) or in response to increases in
the value of the U.S. dollar (currency risk).

* Earnings consist of gains (or losses) in the prices of stocks, currency
changes relative to the U.S. dollar, and dividend income.

You seem to look at the end game without any account for the "WHY". You simply say the I Fund is up more than anything else and use that to justify hammering members here. Additionally, I am not saying go to the G or F or anything safe. My comment merely suggests that an investor should account for currency fluctuations in the I Fund.

And to be quite honest, you toot a very loud horn with zero backing of your claims of a successful investor or to the why. I do not state how successful I am or attempt to goad and berate other members. In the future, refrain from doing so. This is your second warning. Take measures to add to this discussion by citing sources that differ from comment and do so in a polite, but assertive manner. Follow these guidelines or be banned.

[pcallah]

Currency fluctuations are HUGE. Maybe a little hypothetical will help. A widget costs E100. The $ to E exchange rate is 1.00 to 1.00. (It takes 1.00 dollar to buy E1.00) You take your $100 and buy a widget. A year later it's value is up 20% to E120. But the value of the dollar has strengthened. The $ to E exchange rate is now .80 to 1.00. Your E120 widget is worth $96. Your big gain became a loss due to currency fluctuations. Of course if you can find a winning investment AND get currency fluctuations on your side you can make a killing.

[skiehawk11]

Not that I need to prove the point of the importance of currency, but this blog post has a pretty good handle on it:

http://bencarlsonyahoofinance.tumblr.co ... -portfolio