Reply to Federal employee, how do you choose your TSP investment?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]If you're young, consider going all C fund.  If the market is tanking dismally for so many years then the fundamentals of this country's economy will be in danger. In any event.  If you're unfortunate enough to be stuck in govt decades later, obviously you'll want to switch to more conservative options.  [/quote]

I never like any "all eggs in one basket" strategy.

"The market" is a collection of sub-markets and they wax and wane in somewhat cyclical (or more unpredictable) patterns.  Locking yourself into only one guarantees that you will miss any upswings by other parts of the market and that you will fully lock in and take a hit from any downswing.  And remember it's much harder to gain back what you've lost once that happens, so protecting your downside is IMO more important that looking for that big gain.

If you take a 30% hit you have to then get a 40%+ just to get back to where you started.

I'd overweight C compared to S & I now but I wouldn't go all in on any of the funds, ever.  Diversity, even in small bits, helps cover you.  As my grandfather, a stockbroker, said (he didn't make it up), "bulls make money and bears make money, but hogs get slaughtered."

[/quote]

meant to say "you will fully lock in and take a hit from any downswing in your single sector" (of course) ... [/quote]

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