Tuesday, February 28, 2012

Federal Employees TSP (401-k Program): Selling the Small cap stocks in favor of the S&P 500


Over the past several weeks the Wilshire 4500 has been slipping a little bit relative to the S&P 500, so I will sell the “S” fund (Wilshire 4500) Wednesday and buy the “C” fund (S&P 500).

The “S” fund is still outperforming by about 4% year-to-date, but if the S&P 500 corrects I might lose that advantage.  

By moving on the last day of the month I preserve the 3-shifts allowed in a month for March.  I don't feel strongly about the move - it just seems like the time is right.