Tag Archives: G Fund
There was an excellent article in the back pages of today’s Wall Street Journal titled “Yes, You Can Time the Market.” It detailed a method of determining when market fundamentals are too frothy, and how to re-adjust one’s stock holdings versus bond holdings. The author focuses on the Shiller P/E ratio for the S&P 500, which currently stands at a rather high 26.31. For comparison’s sake, right before “Black Tuesday” in 1929, the ratio stood at 30, while during the … moreComments Off on Market Fundamentals as ‘Market Timing’?
We reached the debt ceiling again last Friday, February 7. Treasury had notified Congress two weeks earlier that it “would be forced to use extraordinary measures to continue to finance the government on a temporary basis.” One of these measures is to suspend interest payments to the TSP’s G Fund. Treasury did this as of February 10, according to the Treasury Secretary’s letter to Congress and to a TSP announcement posted today*: “G Fund & the debt limit — (February … more1 Comment
The president today signed a Presidential Memorandum directing the Secretary of the Treasury to develop “a new retirement savings security that can be made available through employers to their employees” and that offers “a low minimum opening amount…while earning interest at a rate based on yields on outstanding Treasury securities.” While not stated explicitly in the memorandum, the new “savings security” will have the same return as and function similarly to the G Fund. The program has been termed “myRA,” … more1 Comment
TSP administrators floated a request for proposals to manage the Small Cap Stock Index Investment Fund — the S Fund — earlier this month. This is the third major RFP to manage individual TSP funds in the past 18 months. BlackRock was re-awarded the contract to run the I Fund early last fall, three months after the RFP was first released in June last year. The contract award was made in half the time originally anticipated, with the final award expected … moreComments Off on Will BlackRock Continue to Manage the S Fund?
Ok, I admit it. I read the June TSP announcement on the debt ceiling with too jaundiced of an eye. Back in early June, the Executive Director posted this message, which reads in part: “…On May 31, the U.S. Treasury notified me that it is unable to fully invest securities in the G Fund at this time. However, this will not directly impact the accounts of G Fund investors. G Fund earnings are fully guaranteed by the Federal Government, and … more1 Comment