July 2021

Allocation Percentages for July 2021
F Fund

0%

C Fund

33%

S Fund

67%

I Fund

0%

I had another very solid month with a return of 3.16%. The S Fund continues to generate incredibly strong returns, and the C Fund is still solid as well. My one caution to everyone is to not get used to these types of returns. The average S&P 500 returns outside of these abnormal years and in non-recession years is at best 8%. At some point, there will be a reversion as our economy and the companies in the S and C Funds are not growing at 20-30% a year. Rather, we are seeing the effects of the inflationary monetary policy moving liquidity to the markets and into stocks. The reports continue to come out about inflation and whether it is transitory or permanent. If it is transitory then, by nature we would expect deflation in a transitory sense as well. In either scenario, transitory or permanent-both are not good. At some point, the Federal Reserve will have to act when the velocity of money or the amount of money in circulation reaches a tipping point. What that tipping point is, is still anyone's guess. I am of the belief that any interest rate hikes are still several quarters away. We are in a recovery mode, and unemployment benefits are still preventing full employment. There will be a hesitancy to raise interest rates until the IS-LM-FE curves are in better alignment. As a result, I'm still in the market for the C and the S Funds. I think the S rally will start to level out (especially over the summer), while the C Fund will continue to be decent. Have a great Independence Day holiday and long weekend! 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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