Gallo1,
I'll try and answer some of your questions. The sp500 is just now putting in several 4 year highs - these are not new all-time highs. We are at 1229 on the index, the peak was in 2000 at 1527. The small cap R2K is putting in 7 year all-time new highs. The SPX is now regarded as the new value play because it is undervalued and has been the underperformer since who can remember? The $13.22 price is cheap in comparison to the S fund and the I fund. Over the next 6 - 12 months the C fund may very well outperform the others.That's why I've chosen to own it.
If you have a multi-thousands of share position like some of us salty dogs, it is always prudent to eventually seek shelter from any large storms in the future - such as the next recession. Small positions give you flexibility to absorb minor losses and keep on dollar cost averaging. I would ride the bottom all day long with dollar cost averaging - buying on the lows - there is nothing more satisfying than causing one self pain buying at low prices. My current objective will be to lighten my load on a consistent basis if the sp500 comes anywhere close to 1700 on the index. Can you visualize how difficult this process will be - giving up profit on the way up. It does require discipline to sacrifice greed. I hope at some point in your future you get the opportunity to feel the greed factor - greed is good - but only to a certain extent.
If you are so darn unlucky to hit a down patch before you retire- and it can easily happen to anyone - be prepared to not take money out at that time. Use time to your advantage - wait until the upside returns - remember you are in control of your destiny. We will all be looking over our shoulders for the next significant downside. I'm still on the come back trail from my oceanic account which took a 900 point hit. The downsides will come in many forms, some as head fakes, some will blind side you, and frankly some will try to clean you out. Some corrections will be welcome for better pricing- folks are waiting for one now to get in - they may have missed the train and will have to pay up to play. Other downsides will require courage to hold the line and take the pain. TSP gives you the advantage of moving 100% without consequent taxes, if you end up being premature just come back at a later time. Let the fun times begin - this really should be fun even though it's a serious matter.
Dennis
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