October 2018

Although September was a down month for the S Fund and my investments, it really was flat overall, especially compared to previous months this year. The allocation percentage for my TSP will be 100% C Fund next month. If you have been monitoring my allocation percentages, you will notice that this is a shift from my S Fund allocations in the past. The reason for this switch is due to calculations I make during certain times of the year where I try to remove noise from the market. Without the noise reduction, my allocation would be close to 50% for the C and the S Fund. I'm still very bullish on the US economy, but coupled with my formulaic approach, I am also seeing continued improvements in the US trade wars. At the time of this writing, Canada is on the verge of agreeing to sign to the new NAFTA, after Mexico already signed. Without a doubt, the negotiations will help the US economy and the companies that make up the C and S Fund, which should be reflected in the price. I am still positive on the elections coming up in November as well. As I have mentioned before, I do not believe a monumental change will occur across the Congress. As long as the balance of power does not shift too dramatically, I think the US economy and businesses will feel comfortable in the current environment, and they will continue to conduct business under the new normal. I would not be surprised to see another flat month in October based on the wait and see approach of investors. Keep investing!