Reluctantly Making a Transfer Today

[tsptalk]

I am pulling another third out of the market for protection purposes. I will initiate a transfer this morninggoing 65% G, 15% C and 20% I fund. This will be effective Wenesday 4/22.

I hate selling fear but I am in protection mode. Who knows what will happen the rest of the day but since the S&P is not exactly jumping over the 1120 mark this morning, I will take the more cautious approach and step aside and see what develops.

More to come...

[tsptalk]

A test of March's lows seems like a real possibility. Of course the market always tries to prove me wrong. This reaction to Greenspanhas really surprised me. What doesn't surprise me is that we may test that low. We've had a couple of indications that it could happen including the sentiment survey, the real estate indices, and the extreme TRINreadings on the ARMS index. Italked about these in prior comments.. They would be on the archive list on the bottom left of the comments page (http://www.tsptalk.com/comments.html)if you want to go back.

Tom

[tsptalk]

I guess the question now is when will rates be raised and by how much? It's the uncertainty that is most likely troubling investors the most, because we all knewrate hikes were coming eventually.

So the market may continue its volatile action until we get a better idea, and that might not be until the rates are actually raised. Once the rates hikes are announced, ironically, it may be the time to buy.

[thinks]

I had a feeling you'd be moving.

There's still the'unknown' of when. It's almost worse than before Mr.G. spoke in some ways. Seems like it s/h cleared a few things up but doesn't appear as though it did for the good, kwim.

For a beginner who's trying to learn I'm trying to take this all in is .... hmm, can't think of a good word but it's not easy to put all the pieces together. I must admit I do like this... bit of a hobby as I don't have much $ to play with yet.

I was searching around and was wondering if you could point me to where you've talked about your contribution allocation you've got going right now.It sounds like you must have that where you like it since you've only mentioned changing your interfund transfers. Could I ask for your thoughts on this. TIA.

[tsptalk]

It is a constant learning process. Not only learning about the market, which never wants you to figure it out, but also learning about yourself and how you deal with the ups and downs of short term investing. It can be a fun, frustrating, enjoyable hobby. When you get older you'll be glad you know about this stuff as someday you could be living off of your investment income :)

I took this from my FAQ page. Let me know if this doesn't answer the question you had...

When you make an interfund transfer, do you also change your contributions?

I usually only do an interfund transfer. When you do an interfund transfer, your total balance gets moved at that point. If you haven't made a transfer in a month or more and your contribution allocation is different than your current allocation, you might go in and do another transfer to get those new contributions into your desired allocation. If you were to do just one, I would do the interfund transfer. But you could just as easily do both.