Friday, August 24, 2007

I Fund & US Dollar Seasonality

The following observation about the seasonal effect on the US Dollar and it's impact on I fund returns is worth noting. The best 6 months of the year for the I fund appears to run from June thru December, but the best period for the domestic US market runs from October thru April. So, it would appear that the best period of the year for both the domestic market C&S funds and the I fund would be the fall period from October thru December.

"The I fund picks up about 75% of its returns during the latter 6 monthsof the year largely as a function of the USD seasonality.USD usually strengthens from Jan-June and weakens during the remainderof the year.--- " In TSP_Strategy@ yahoogroups. com, "Sarah" wrote:> USD index down .2% to 80.9.> It has just crossed below its 50 day MA.>> Last week of the month is coming up> and it should be bullish.>


Neither the TSP Strategy group, nor individual members including myself, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

No comments: