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
2025-04-29 27.0320 13.9021 50.6007 15.2304 57.7904 15.8483 34.7994 17.4179 17.4158 17.4136 10.3209 19.0288 20.1062 88.2075 81.8246 45.5389
2025-04-28 26.9910 13.8801 50.4439 15.1787 57.5778 15.7861 34.6549 17.3341 17.3320 17.3299 10.2712 19.0266 20.0564 87.6983 81.3156 45.4041
Daily Change 0.15%0.16%0.31%0.34%0.37%0.39%0.42%0.48%0.48%0.48%0.48%0.01%0.25%0.58%0.63%0.3%
Month to Date 0.63%0.64%0.84%0.87%0.88%0.89%0.9%0.89%0.89%0.89%0.89%0.34%0.44%-0.83%-0.33%3.87%
Year to Date 1.09%1.02%0.31%0.17%0.01%-0.13%-0.28%-0.94%-0.94%-0.94%-0.92%1.46%3.22%-5.08%-9.24%8.69%
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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