Thread: C fund verus S Fund chart - here it is

My two cents.

The C Fund has the best cumulative return since 1994. In the 1980s the MSCI EAFE was the star.Historically, small caps are supposed to provide a risk premium. However, they haven't provided it recently and I wouldn't bet my retirement on it! Experts even predict that stocks may under performbonds over the next decade – I hope not! Finally, I'm glad I've got something in bonds this year. It makes my equity loses somewhat easier to stomach!

Unless you're psychic --- diversify!!! Of course, if you ARE psychic…. :^

billpritjr wrote:

S-Fund tracks the Wilshire 4500, which is ticker symbol ^EMW on Yahoo Finance.

C-Fund tracks SP 500. Go to Yahoo Finance and choose "compare"

this will bring up the performance comparison between both indexes.

finance.yahoo.com/q/bc?s=^GSPC&t=2y&l=on&z=l&q=l&c =^EMW

as you can see, the markets rallied in April 2003 and performed pretty similar but in June it was obvious the S-Fund was outperforming the C-fund. I would be 100% S-fund. WHY NOT?

Actually bill, the ^EMW symbol was disabled in May. The new symbol for the Wilshire 4500 is ^dwcp. Do the comparison with that and you'll see thatlately, the S&P has done a bit better.

finance.yahoo.com/q/bc?s=^GSPC&t=2y&l=on&z=l&q=l&c =^DWCP

As interest rates rise, the larger stocks will eventually outperform. I do agree however, that the next intermediatetermrally (3 to 6 months) will benefit small caps over the large caps. I may end up going to 100% S if we ever see a bottom.

sounds good

I wouldn't be terribly shocked if the market went "Bear" for the next few months. We have seen a rally since March 2003 until present (1.5 years long), so it may be time for a bear cycle. We have to realize that the internet .com stock era of "straight up" from 1995 to 2000 may not happen again. The markets are (oh no!) back to normal cycles!

anyway, who knows, I sure dont, I just stay in line with the trend.

I would recommend two books that have really helped my understanding of the markets

The Successful Investor - William O'Neil - 2004

Secrets to Profits in Bull and Bear Markets - Stan Weinstein - 1988 but still applicable

thanks for the symbol change TSPTalk

take care have a good weekend everybody

BillPritjr,

RE: my 2 cents.

From studying the S&C funds intensly and from reading posts from others who do as well. There are times when the S fund performs much better that the C. And there are times when the C fund performs better than the S.

--> Look the numbers: when the S fund is performing better than the C, is when the market is going up. When the C fund outperforms the S, is when the market is dropping.

If the above is true, and it has been this year. Watch for the S fund to start outperforming the C fund - then jump in. When the C fund starts to outperform the S, Jump to G and wait for the cycle to begin again.

this simple rule saved me about 8% in recent weeks.
CJ