October 2021

Allocation Percentages for October 2021
F Fund

0%

C Fund

67%

S Fund

33%

I Fund

0%

Well, that was a rough month. No safe harbor for any investments in the TSP portfolio. I have been warning since January 2021 inflation was coming. Despite the PR campaign to say it was not sticky, it seems to have stuck. We have been over 5% since May, and we are at 5.3% as of the last monthly reporting. Translation, if you are not earning over 5.3% in returns, you are making negative returns. This makes the G and the F Fund substantially negative for the year and the real returns for the C and S look tamer at 10.6% and 6.3%, respectively. As of this writing, our elected representatives have approved the continuing resolution to keep our government running, something that affects us all, and they will vote later tonight on the infrastructure bill. The infrastructure bill initially looked like it had support when proposed months ago, but the increase to $3.5T seems untenable. Undoubtably, even the $1.5T bill will unleash a massive amount of artificial stimulus that will spur on the economy, but will also add to our debt and increase inflation even more. This type of spending and inflation, if coupled with growth, can lead to a stronger economy. However, it could also lead to a quick sugar high, followed by a crash and inflation-otherwise known as stagflation. I still think in the short-term investors will in continue to seek returns higher than inflation, and the only place to do that is in the market itself (outside other creative investment vehicles we do not have access to in the TSP). Long-term, we need a return-to-work policy and a concerted effort to keep inflation at the target 2%. 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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