Thursday, August 4, 2011

This is bad, bailing is the only option.

I heard someone say today at work about their 401K, “well I rode it down this far, so I really have no choice but to stay in and ride it out.” Really? Have you forgotten 2008?

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You can always get back in when the trend reverses! You do not have to call tops and bottoms in order to do this, but watch the trends and try ride the wave back up. All I can tell you right now in time is the same thing that I said in this past weekends post.

Conclusion: There is no reason to be invested in any fund but the G-fund at this point. If you are still in, then at this point it is worth the wait to see what happens. If there is no solution by Tuesday then we should all bail.

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TSP Distribution: F-fund – 50%, G-fund – 50%

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