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Thread: TSP Inverse Fund

  1. #1

    Default TSP Inverse Fund

    I'm not sure if you need to be logged into Facebook to see this post from one of our members. He's trying to get a petition going to add an inverse fund to the TSP...

    https://www.facebook.com/tsptalk/posts/679604635413634


    I'm not trying to get a discussion going here, although you are free to comment. Just passing it along. Perhaps discussing it on that Facebook page would get some views.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.


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  3. #2

    Join Date
    Jun 2004
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    Boiled Peanut, Georgia, USA
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    Default Re: TSP Inverse Fund

    Going SHORT would be good but we would need more IFTs! IMHO



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  5. #3

    Default Re: TSP Inverse Fund

    I agree that would be a priority over the inverse fund.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.

  6.  
  7. #4

    Join Date
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    Europe
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    Default Re: TSP Inverse Fund

    I would love to have an inverse fund, I doubt it will ever happen. The timing just isn't right, when you consider the markets made 30% last year. In addition, this would go against the Feds policy of providing liquidity into the markets, essentially we are asking for a fund that shorts the government.

    Regardless, if the petition gets published, I'll sign it.
    Retired, 55G/15C/15S/15I (Paper Trading)_ BLOG: Stats for March, Stats for Q1, 2024 Stats

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  9. #5

    Default Re: TSP Inverse Fund

    Just a thought, in case this phrase is going to be seen by deciders on the issue: "Unfortunately, in a falling stock market, participants are NOT ABLE to benefit as the players on Wall Street can." ......might be better received by those deciders if it said..... "Unfortunately, in a falling stock market, participants are NOT ABLE to act as private sector investors can. "

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  11. #6

    Join Date
    Mar 2006
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    Raleigh, NC
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    3,416

    Default Re: TSP Inverse Fund

    Quote Originally Posted by Warrenlm View Post
    Just a thought, in case this phrase is going to be seen by deciders on the issue: "Unfortunately, in a falling stock market, participants are NOT ABLE to benefit as the players on Wall Street can." ......might be better received by those deciders if it said..... "Unfortunately, in a falling stock market, participants are NOT ABLE to act as private sector investors can. "
    WarrenLM,

    We simply do not have a safe fund that will move inversely if the equity markets drop. The 'F Fund' is in correction as I type. It does not have the room to buffer an equity correction. It will stay in correction.

    And, with the FED ending QE, what happens to the 'G Fund'. We (the Imperial We as in the Federal Gubmint!!!) have sustained enormous debt growth - much of which the FED purchased. Remember also that the Treasury seems to enact extraordinary procedures every year to float their debt habit. Those extraordinary procedures are raids on your pension and 'G Fund' assets. The 'G Fund' rate of return should go up to entice the purchase of those assets - but that rate is artificially created by the Gubmint. Who is to say they will not both 'borrow' from the 'G Fund' and artificially depress the interest rate. They got to grab the easy money where they can!!!

    So, back to this thread... With the high probability of F/C/S/I funds moving in the same direction during an equities correction the only asset class we have available is the 'G Fund'. And, the market does not control the 'G Fund'. While I would not really want an inverse fund I would like a REIT, a true cash fund, an emerging markets fund, and a commodities fund.
    Lookin' up at the 'G Fund'!!!

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  13. Default Re: TSP Inverse Fund

    I have decided to publish my petition to the White House on on January 15th. I will have the link to it, and I will post it on the TSP Talk Facebook page. All who have a vested interest can then freely disseminate the link to whomever. By the rules set up from the White House, 100,000 signees will be needed within the 30-day limit from date of publishing. If this comes about, then the White House will release an official response. I will be monitoring comments to this post on FB/TSP Talk, and reply as needed.

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  15. #8

    Default Re: TSP Inverse Fund

    I will sign the petition and help spread the word since I'd really like to see an inverse fund, but I think we'd be taking on the wrong fight as nnuut mentioned. I would guess that an inverse fund petition might generate a couple hundred responses while an increased in the limit of monthly IFT's might get thousands, maybe 10's of thousands. 100,000 for any TSP related change is a little ambitious and would take some work. I think we'd be hard-presses to find 100,000 federal employees / military personnel who would know what an inverse fund is or what to do with it. I'm with you, but just keeping it real.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.

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  17. #9

    Join Date
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    Default Re: TSP Inverse Fund

    I'll sign that one!




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  19. #10

    Join Date
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    Default Re: TSP Inverse Fund

    in the past i would have been all for it, but eh I've adopted a different strategy. being in cash during a market down is the same as winning to me.

    if there's an inverse fund we'd definitely need more IFT's to really take advantage of it, and I don't see it happening unfortunately

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  21. #11

    Join Date
    Jan 2010
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    Default Re: TSP Inverse Fund

    An Inverse Fund would be pretty dangerous...don't know if I'd use it. I have occasionally bought SDS shares in my trading account and I've learned a lot of lessons. The need for more IFTs is important because those vehicles tend to only go up for short durations. Afterall, the overall trend of stocks is upward, so timing is essential.

    That being said, I'm all for having more freedom and choices. I would use a commodities or energy or precious metals fund more, I suspect. I also wonder why a NASDAQ tracking fund has never come about...is it because its close enough to the S Fund?

    Even more important to me is to eliminate the transaction lag. I most want my transactions to be instantaneous, or as close to that as possible, with no deadline.

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  23. Default Re: TSP Inverse Fund

    Quote Originally Posted by tsptalk View Post
    I will sign the petition and help spread the word since I'd really like to see an inverse fund, but I think we'd be taking on the wrong fight as nnuut mentioned. I would guess that an inverse fund petition might generate a couple hundred responses while an increased in the limit of monthly IFT's might get thousands, maybe 10's of thousands. 100,000 for any TSP related change is a little ambitious and would take some work. I think we'd be hard-presses to find 100,000 federal employees / military personnel who would know what an inverse fund is or what to do with it. I'm with you, but just keeping it real.
    We need to start somewhere--as Wayne Gretzky once said: "You miss 100% of the shots you don't take." I started with the Inverse funds idea because I want to profit significantly in a falling market. No matter how many IFTs one might do in the course of one month of a falling market, going to the G fund does't really profit. Notwithstanding this, it is quite possible that--should this petition get the attention of the White House--the policy makers may even throw in extra oomph in the form of more ITFs. This petition will get the ball rolling, so regardless of whether we make the 100,000 signee minimum--and if it does, but the White House response doesn't voluntarily include more IFTs-- I will put out part two (more IFTs) to carry on the fight to improve TSP.
    Last edited by Play_the_Extremes; 01-07-2014 at 01:31 PM.

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