Good news everybody! The European Union is free of Great Britain today! This means the EU has on average much better tasting food and overall dental health, but much worse whiskey. This also means it will be much harder for Businesses in GB to trade with other EU nations, but the best result is there is a massive discount on all of your favorite stocks! You don’t have to pay for an astounding $130 for a single share of AAPL, now you can get it at the bargain price of $93. This is like going into Macy’s and finding everything is on sale!!! Paradoxically everyone seems to be upset when the same thing exact thing happens to stocks! This fire sale will be reflected in the TSP C-Fund today which opened at $28.8155. You can snach up C and I for super cheap by shifting money from G in the upcoming weeks.
If you had your eye on a sweater, do you just keep on buying up multiple sweaters as the price increases? No, because you only needed one damn sweater and you wanted it cheap and at a good fair price. So you see the sweater at the store, and its way over priced, don’t buy it. Never pay retail, just buy it from some sucker that bought 6 at an over valued price, they will be desperate to sell at any price, even at a loss to themselves when the market corrects.
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
-Warren G (Regulate) Buffet
You did have everything in G Fund right? or did you really think your stocks would go up forever to the moon? If you were the latter, I bet you bought a huge house in 2007 thinking it would be worth $13 billion dollars by the time you retired.
Now if you were caught buying these stocks at retail price, then you certainly haven’t been reading Davey Nelson’s blog who describes this mindless practice to buy C-Fund as “picking up nickels in front of a bulldozer”. Yes, the last few weeks in C have earned modest gains, but at very high risk. Davey has advocated 100% G fund investment allocation in his TSP, earning a sure thing return of 2%. Now this is the day we have been waiting for, the correction. Now things are valued correctly, and its time to actually buy stocks on the cheap.
Remember, don’t follow dumb money, don’t be an idiot. You some times have to play the Do Not Pass line and have everyone Boo you because they think you are criticizing their dumb investment moves (because you are). Retirement is for yourself, no one will help you, and those who say they have your best interest in mind, they do not since they get paid a sweet commission to sell you on dreams of owning a vineyard or some other garbage by taking 1% of your gains. You are just as qualified to invest as these bloodsuckers, just index with TSP at 29 cents per $1,000.
You also have to be mindful of your emotional peers that believe as long as we all think positive the S&P 500 it will increase in value forever. They don’t see the underlying fundaments to the actual valuations of these stocks. They buy and sell do to FOMO and also dump buckets of ice water on their heads because of FOMO. Do not listen to these people and read the writings of many bloggers such as Jesse Fielder and Math Babe Cathy O’Neal who are geeky emotionless math people (pragcap) that do the hard work for you. Ever better just read Davey’s blog which summarizes all these blogs (and others) for you.
I am celebrating my JOMO and you could be too. Next time, log into that TSP at least once a week and access the account, then rebalance as needed. When people are flipping out on FaceBook, time to shift from G to CSI, and when everyone is buying up stocks and dreaming of yachts, its time to shift everything back to G, because the gains have already been made. You can always shift your funds to G, protect your self from these corrections, Your welcome!
Joe Kennedy famously stated that he knew it was time to sell his stocks when his shoe shine boy was giving him stock advice, The modern day equivalent is Facebook, when you Aunt Jane is telling you to buy up FaceBook, Twitter and Tesla. Ask your self how your beanie baby collection is doing.