On Wednesday Feds deci ...
Amid heavy market turbulence individual investors started pouring money back into stock mutual funds. Last week, according to Banc of America Securities analysis report, mutual fund owners poured $3 billion more into stock mutual funds than they withdrew. That’s a very sharp change from the week before, when more money came out than went in (i.e. $3.3 billion outflow).
Our take: investors might be seeing a buying opportunity on the market after recent sell-off. At the same time it looks like indiv ...
Next Week's TSP Funds Allocation:
Good morning, TSPwire Tactical Investor!
We are very pleased with results that our financial models yielded last week. We managed to pull out all funds from stocks right before Tuesday's sell-off and saved ourselves from the 1.3-1.4% loss (C & I Funds dropped 1.3% last week and S Fund lost 1.4%).
We ran our financial models and calcu ...
Our financial models performed flawlessly this week. After slightly positive results on Monday all funds were moved into F Fund just in time for the second worst sell-off day since September 2001.
Today markets were all over the place. At the lowest point S&P500 hit 1,363 which is 11 points below last week’s low. That’s not a good sign because in traders’ terms “S&P500 failed to support last week’s floor” and might go lower.
Good evening, Fellow TSPwire Tactical Investor!
Based on results of ou ...
If we would looked back at history we would see that majority of times when market corrections occur, (see graph) stock indexes either touch or break through the 200-day moving average. If history repeats itself, we did not arrive to the bottom of correction just yet. Hang on guys – eventually we’ll get back into the game and ride the wave all the way up to victory!
According to reports billions of dollars were pulled from stock markets worldwide and it looks like at this point investors are unsure where to park those funds for a long term. Portion of those funds went into US Treasury bonds (it’s good for F Fund) but where the rest of the cash will flow will depends on a lot of factors.
Some investors speculate that current sell-off is a beginning of 7-10% correction of the markets. Others tend to believe that it’s just a temporary “hiccup” and that markets will bounce bac ...
After the worst week on the Wall Street since 2001 a lot of in ...
Reports on surprising raise of personal earnings, spending, weekly jobless claims, ISM manufacturing index seem to raise the market in the second half of the day. Markets finished lower but looked not as bad as they did in the morning. Treasuries prices edged higher since more and more investors pulled money from stock market and moved them into safe bonds. We are sticking with distribution for this week and will re-evaluate our allocations this weekend.
Wow… what a day… Feds revised down GDP for the last quarter, Taliban terrorist attempted to carry out suicide bombing attack against Dick Cheney, Greenspan shared his pessimistic insights about future of US economy (he thinks that US will fall into recession in the second half of the year), China showed first signs of its economic slow down. If you’ll add the mix computer glitch that overestimated sell-off speed and stop loss sales that were triggered by initial decline in indexes you have a perfect formula for troubles that resulted in the biggest sell-off since September-12th, 2001.