12/14/17

Good Evening, The tax reform bill hit a snag when Senator Marco Rubio of Florida sated that he would not vote for the bill unless the child tax credit is increased. As a result the market sold off. This sets us up for either another “the tax bill is passed rally” or an almost certain correction. If you fear the latter this is probably a good time to go to cash or in our case the G Fund. Politics aside, I find it hard to believe that Republicans will fail to pass a bill knowing that they will lose a crucial vote after the 1st of the year when the new Alabama Senator Jones is sworn in. I don’t know about all this political stuff, but I do know this with close to 100% certainty that if some form of corporate tax cut is not passed this market will drop and it will probably drop hard. I’m still betting that it will get done. However, if your view is that it won’t happen my advice to you is to get out of this market while you still have time. There’s always a small chance that I am wrong and things will be fine regardless. All I can say is assess the situation and proceed at your own risk. Either way, I’m going to continue to place my faith in God. The current situation only reminds me once again that if you place your faith in men you’ll likely be disappointed.

The days trading left us with the following results: Our TSP allotment dropped -0.80%. For comparison, the Dow fell -0.31%, the Nasdaq -0.28%, and the S&P 500 -0.41%.

 

Wall St falls as investors fret about tax bill passage

The days action left us with the following signals: C-Buy, S-Neutral, I-Buy, F-Neutral. We are currently invested at 100/S. Our allocation is now +17.06% on the year. Here are the latest posted results:
12/14/17 Prior Prices
Fund G Fund F Fund C Fund S Fund I Fund
Price 15.5234 18.1345 37.2839 47.5187 30.3193
$ Change 0.0010 0.0099 -0.1465 -0.3896 -0.0489
% Change day +0.01% +0.05% -0.39% -0.81% -0.16%
% Change week +0.04% +0.31% +0.04% -0.83% +0.56%
% Change month +0.09% +0.58% +0.23% -1.49% -0.16%
% Change year +2.22% +3.93% +20.77% +15.91% +23.24%
  L INC L 2020 L 2030 L 2040 L 2050
Price 19.4853 26.7477 30.4804 33.1537 19.1832
$ Change -0.0133 -0.0356 -0.0713 -0.0930 -0.0622
% Change day -0.07% -0.13% -0.23% -0.28% -0.32%
% Change week +0.06% +0.07% +0.07% +0.07% +0.06%
% Change month +0.08% +0.04% -0.03% -0.06% -0.11%
% Change year +5.84% +9.27% +13.58% +15.63% +17.50%

 

 

 Now lets take a look at the charts. All signals are annotated with green circles. If you click on the charts they will become larger.
C Fund:
S Fund:
I Fund:
F Fund:
All we can do is take it day by day at this point. The direction that the market takes will be a direct result of the tax reform bill. My faith remains in God. To date He has never let this group down. Have a nice evening and we’ll see what happens tomorrow.
God bless, Scott 8-)
 
 ***Just a reminder that you can review the performance of our allocation at the Web Site TSPTALK.com in the autotracker section under the screen name KyFan1.
 
 
I produce and publish this blog as both a ministry and for the benefit of any Federal Government Employee. This is done to offer you some guidance as to how to approach your retirement more financially successful. When it is time for you to retire, I recommend you utilize the services of a Professional Money Manager, who works with a reputable investment firm. He understands the guidance you have already received and he can manage your savings assets utilizing a more advanced investment program into the future. 
 
If you would like to receive more information about this introduction, please feel free to contact me at  KyFan1@aol.com. 

 

 

 

 

 



Written By

Scott Grimes

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