Recommended TSP Model positions for August are listed in the table below.
TSP TAA Models - Aug 2013
|TSP FUND||BASIC TSP TAA MODEL|
|ENHANCED TSP TAA MODEL|
|ULTRA SIMPLE TSP TAA
I recommend my Enhanced TSP TAA Model or my Ultra Simple TSP TAA Model if you choose to follow one of my models. However, I show the TSP Basic Model as a courtesy.
The Basic TSP Model is derived from the classic tactical asset allocation (TAA) model developed by Mebane Faber.
Mr. Faber’s model recommends five assets, including commodities and real estate. The Thrift Savings Plan has no funds available for commodities and real estate, so my Basic TSP Model is adapted using the funds that are available in the TSP. My Basic TSP Model does use the same timing signals that Mr. Faber’s original model uses.
My Enhanced TSP Model includes additional signals that allow for partial positions in each asset rather than “all in” or “all out” as in the Basic TSP Model. The additional signals are designed to shift some money to the less volatile funds when appropriate and hopefully avoid more of any downturn. As with any mechanical signal, it is right some of the time – not all the time.
My Ultra Simple TSP TAA Model is new for 2013 and extremely easy to follow and use without calculators or spreadsheets. You can read more about it here.
If you are following one of our TSP TAA Models, remember you have until noon Eastern Time Thursday to submit your Interfund Transfer request in order for your request to be effective at the market close. Here is a link to TSP Interfund transfers for your convenience.
Enjoy the rest of this week!