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11032014 Alert November 3, 2014

Posted by easterntiger in Uncategorized.

I am exiting both equity funds that I entered (C fund and S fund), effective immediately.


The fast run-ups since the last report came from just two events, most significantly, Friday’s announcement by Japan to dramatically increase it’s own

quantitative easing (QE) program; more loans.  Even though the US markets will draw a benefit from their stimulus, funding some equity purchases here,

the bottom line is that this is seen as a desperate attempt to revive their economy.  This is the equivalent of you or me going out to get more credit cards as an

answer to our first maxing out our existing credit cards.  It’s fun for a while, but, eventually the bills will come due, and, the bills will be bigger.   This ‘fix’ will result

in a vicious hangover at some time in the future.  Japan’s economy is only 1/3 the size of ours, yet, the QE program is over 3 times as large as ours ever was.


Distance recovered as of Friday, measured against the previous September high as a bounce from the October low:

C Fund – 106%

S Fund – 86%

I Fund – 56%


Important Note – Changes to TSP accounts must be completed by 11 AM Eastern today in  order to be effective by the close of markets today. After 11 AM.,

changes will not take effect until close of markets tomorrow.



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