Opportunity is a Powerful Force

Welcome to The TSP Investment Club!

We are up 14% for the year 2010 in the C Fund and G Fund combined. (As of the market close, December 31, 2010)

The Standard & Poor's 500 Index is up roughly 12.8% for the year 2010. (As of the market close, December 31, 2010)

[July 3, 2011 Update: We are flat for the year. The market is severely overbought in a downtrend. We anticipate resumption of the dominant down trend this month and performance surpassing the Standard & Poor's 500 Index by August 31, 2011.]

Over the years, I would urge Barbara to invest in the Thrift Savings Plan. I remember those early years well when stocks like Yahoo and Juniper Networks seemingly were going up to the moon. Then, the market crashed in 2000. I remained bullish , however, because I knew that historically, the market has gone up more than it has gone down. I made mistakes along the way but I remained persistent in trying to understand why the market would go up and why it would go down. I read many, many books. In doing so, I discovered that no one had the answer all the time to the market. But there were ways of thinking about the market that offered more value than others; i.e. the Elliott Wave theory, positive and negative divergence, the 40-week cycle (I can see Barbara in my mind's eye reminding me to keep it simple/smile.)

Well, to keep it simple, I began to anticipate times when the market might fall. And I was right. I began to anticipate times when the market might rise. And I was right. But I didn't touch my retirement account because I was long-term bullish.

Things changed in 2008. For technical reasons, I could foresee in the Summer of 2008 that the market was about to crash. I suggested to Barbara that she move out of the C Fund and into the G Fund until the storm had passed. I did. Barbara didn't because she was very busy with life. Well, the crash came and both of us were impressed with the ability of technical analysis to foresee a stock market crash.

In March 2009, I suggested to Barbara that she move 100% of her funds into the C Fund. March 2009 would be the absolute bottom for the year. This year, I suggested that Barbara stay out of the C Fund in early May, moments before the famous Flash Crash. When the storm had passed, I suggested to Barbara and other core members of The TSP Investment Club that I was going 100% into the C Fund. The date was August 25, 2010.

We are now up over 10% for the year as of October 11, 2011.

The purpose of this blog is to help educate the public about investing. Why are some times better for the C Fund than other times? How do you know when the market is about to have the best September in 79 years? How do you sense that the market is about to fall over a cliff? How can we keep it all as simple as possible? (I hear you, Barbara).

So, that's what we are about.

My goal is that we are 100% in the C Fund when the market is going up. And that we are 100% in the G Fund when the market is going down. I hope that we continue to beat most professional money managers year after year after year. I also hope that we add to the education level of the average investor.

Opportunity is a powerful force! May we always be ready to seize opportunities like August 25, 2010 and March 2009 in the future days to come.

Sincerely,


Wink
Barbara
John
Jenny
Cheryl

Standard Disclaimers
1. This blog is for educational purposes only.
2. None of the individuals associated with the Las Vegas TSP Investment Club are registered financial advisors.
3. This blog is not an offer to the public to buy or sell any stocks, options, commodities or futures.
4. You are encouraged to do your own due diligence and to consult with a professional financial advisor before making any investment decision.
5. This blog cannot take responsibility for the results of your investment and trading decisions.