Page 5 of 5 FirstFirst ... 345
Results 49 to 51 of 51

Thread: L2050 Fund

  1. #49

    Join Date
    Jan 2020
    Location
    Silicon Valley
    Posts
    8

    Default Re: L2050 Fund

    Gentlemen, I thank you for your input...it does make me re exam what I am suggesting about market efficiency. The input about all the different S&P 500 index funds having different prices is a fair point about the overall stock market having high P/E ratio. But my point is that L2050 and the newer L2055, L2060 and L2065 especially NOT as efficient as they are meant to be all on the same frontier---the basis for the different allocations of the Core Funds as designed by Aon and Mercer. What really screws up the newer L2055, L2060 and L2065 was they are not implemented as designed. The TSP Board decided to not fight Trump and so they do not differ by increasing exposure to China as you go further out into the future on the efficient frontier. What it comes down is whether you believe Harry Markowitz (U.C. San Diego) deserves his Nobel prize for publishing Modern Portfolio Theory in 1952.

  2.  
  3. #50

    Join Date
    Jan 2020
    Location
    Silicon Valley
    Posts
    8

    Default Re: L2050 Fund

    Regarding the Apple stock, it does matter to have four shares vs. single share (same total valuation). Your down side risk is reduced when when you have four cheaper shares. Your upside potential is increased because more people can afford whole shares. Of course, I am assuming normal broker and transactions costs where whole shares meaningful, but now people can buy stock shares to the decimal point like mutual shares. Why do you think Apple chose to do the stock split?

  4.  
  5. #51

    Join Date
    Sep 2006
    Location
    Upstate NY
    Posts
    3,018
    Blog Entries
    45

    Default Re: L2050 Fund

    Why do you assume it's only men providing input here? There are also excellent female contributors on this site.

    Quote Originally Posted by edfong View Post
    What really screws up the newer L2055, L2060 and L2065 was they are not implemented as designed. What it comes down is whether you believe Harry Markowitz (U.C. San Diego) deserves his Nobel prize for publishing Modern Portfolio Theory in 1952.
    L2055 Fund is currently 99% stocks, 1% bonds.

    Same fund with Vanguard is 89% stocks, 11% bonds.

    What am I missing? Are you concerned TSP doesn't invest in Chinese companies or that TSP has too high allocation to stocks vs bonds?

    Quote Originally Posted by edfong View Post
    My question regarding the possible overvaluing of the Core Funds is best represented by how government employees still continue to choose to invest in G Fund when now more than ever it cannot keep up with inflation
    "The G Fund's investment objective is to produce a rate of return that is higher than inflation while avoiding exposure to credit (default) risk and market price fluctuations."

    https://www.tsp.gov/funds-individual/g-fund/


    === = ===

    RE: stock splits - They have zero affect on stock valuation.

  6.  
Page 5 of 5 FirstFirst ... 345

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
SPY (C Fund) (delayed)
L2050 Fund
(Stockcharts.com Real-time)
DWCPF (S Fund) (delayed)
L2050 Fund
(Stockcharts.com Real-time)
EFA (I Fund) (delayed)
L2050 Fund
(Stockcharts.com Real-time)
BND (F Fund) (delayed)
L2050 Fund
(Stockcharts.com Real-time)

Yahoo Finance Realtime TSP Fund Tracking Index Quotes