S&P 500
Though stocks have been moving sideways for a month, they still have great potential at an acceptable risk. In our Conservative allocation, however, we are keeping almost all our money in the money market, since stocks still do definitely have a noticable risk.
If you are also receiving our ETF newsletter, you might note that, in that newsletter, we’re recommending putting most of the money into bonds. Someone might ask why we’re not doing the same in the TSP letter, by recommending the F Fund. The answer is that though both the F Fund and the fund we’re recommending in the ETF letter are both bond funds, these bond funds are different. The ETF recommendation invests specifically in high yield corporate bonds. Such a specific bond fund is not available in the TSP.
Related posts:
- The suggested money market fund makes no sense
- High Yield Corporate Bond
- Bonds and Mexico
- Should I hold on after losing a lot of money?
- Bonds a safe haven