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Thread: Question(s) about "Rallies"

  1. #1
    Single_Tasker is offline Rookie
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    OK... Pasted below is a snip from anh e-mail I got today from TSPTalk:

    //////

    Hello Everyone,

    As I mentioned in Thursday's comments, we could get a little rally today. I see this as an opportunity to lighten up on stocks a little more. Going 75% G, 25% C fund. Please click here to read today's ... ]http://www.tsptalk.com%2Fcomments.html]Market Comments.[/url]

    //////

    My question is this... If there is a "rally", doesn't that mean we MAKE MONEY as a result? If so, why pull your money OUT of where the rally is happening and park it in the G Fund?

    Thanks,

    Bill




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  3. #2
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    Single_Tasker wrote:
    My question is this... If there is a "rally", doesn't that mean we MAKE MONEY as a result? If so, why pull your money OUT of where the rally is happening and park it in the G Fund?

    Thanks,

    Bill

    If there is a rally in equities and you are currently in equities then YES, you make money, honey.

    The answer to your second question isn't as counterintuitive as you make it sound. Obviouslyyou pull your money out if you think that will be the END of the rally and the START of a decline. You keep it in if you think the rally has "legs"and will continue.



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  5. #3
    Rolo is offline Club TSP
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    Yes, a one-day rally, meaning that if you put your IFT order in early enough, stock fundswill be higher ('cos of the one-day rally) when they are sold, as opposed to selling them after a downturn at a lower price (which isn't always a bad thing, but it is not the ideal thing.)

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  7. #4
    cowboy is offline Team TSP
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    Ouch! Sounds like I may lose some cash tomorrow. Damn I was hoping for one more good day.

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  9. #5
    Rolo is offline Club TSP
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    I dunno...I think Friday may be a good day for equities still.

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  11. #6
    cowboy is offline Team TSP
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    I been setting on the side lines thought I would pick up a bounce, hopefully.

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  13. #7
    namor is offline TSP Talker
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    I never say "ouch" until the returns come in, cowboy.

    Besides, if the rally doesn't happen Friday, it still could go Monday.

    Just my thoughts on the matter.

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