July 2019

Allocation Percentages for July 2019
F Fund

0%

C Fund

100%

S Fund

0%

I Fund

0%

We just had another amazing month with a return of over 7% for the C Fund and 6.8% for the S Fund. GDP numbers are strong despite "headwinds" in the underlying financials from durable goods orders to weak employment numbers in May. Driving the durable goods orders is Boeing, the US's greatest exporter. Boeing is not the first strategic US company to suffer strategic disruptions to it operations. General Motors and General Electric have also undergone dramatic downturns. While GE's fate is still up in the air (I think it will recover after 3-4 years and a restructuring plan), the US government made sure GM would not fail. Boeing will be in the same boat as GM and while there will be consequences to its failure to properly test and train pilots for the 737MAX, it will not suffer more than it has probably already suffered and therefore its impact on the market and its vast number of suppliers has already been factored into the market. Next issue to address is the trade war between the US and China. As I have mentioned in the past, the US has the upper hand in this fight. With a healthy GDP, room in the federal interest rate, and a more legitimate and transparent economy, the Chinese are going to eventually run out of fuel and capitulate to US demands. While the tariffs and counter-tariffs are unfortunate and it would have been nice to have resolved the war early, we are entering a new phase where China will begin to feel the real strain on both the reduced demand for its good as a result of US tariffs and its realization that it cannot survive without US food imports. Additionally, the US can lower its interest rates and maintain its growth organically, the worst possible scenario for Chinese exporters. I think the market is still going to remain strong for the year. Perhaps there will be a slight dip in the coming months as people lock in profits, but I am remaining in the C Fund at 100%. Keep investing!
           
  

TSP FUND QUOTES

Date L Income L 2025 L 2030 L 2035 L 2040 L 2045 L 2050 L 2055 L 2060 L 2065 L 2070 G Fund F Fund C Fund S Fund I Fund
2025-06-13 27.6479 14.2316 52.9024 15.9824 60.8723 16.7473 36.8940 18.6869 18.6846 18.6821 11.0726 19.1308 20.0012 95.0040 88.2485 48.5492
2025-06-12 27.7407 14.2818 53.2972 16.1137 61.4173 16.9078 37.2703 18.9127 18.9104 18.9080 11.2064 19.1284 20.0748 96.0737 89.7781 49.1157
Daily Change -0.33%-0.35%-0.74%-0.81%-0.89%-0.95%-1.01%-1.19%-1.19%-1.19%-1.19%0.01%-0.37%-1.11%-1.7%-1.15%
Month to Date 0.44%0.46%0.79%0.85%0.91%0.96%1.01%1.18%1.18%1.19%1.19%0.16%0.24%1.17%1.05%1.28%
Year to Date 3.39%3.42%4.87%5.11%5.35%5.54%5.72%6.28%6.28%6.28%6.29%2.01%2.69%2.23%-2.11%15.88%
Details L Income L 2025 L 2030 L 2035 L 2040 L 2045 L 2050 L 2055 L 2060 L 2065 L 2070 G Fund F Fund C Fund S Fund I Fund
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