Rapid Response TSP SafetyNet Newsletter
All of us at TSP SafetyNET are very excited to announce an upgraded TSP allocation system that our nationally award-winning market analyst, Mike Hartmann, has been perfecting. He has been working hard on this new program for over a year now and after exhaustive testing we are proud to launch this upgraded newsletter system called TSP SafetyNET Rapid Response. It is available to all current TSP SafetyNET subscribers without additional charge.
THE MAJOR POINTS OF THIS NEW PROGRAM
- It is designed for greater protection from loss during volatile times.
- It may bring greater returns due to its optimization for growth.
- It will require more allocation changes possibly up to twice per month.
- It contains a more sensitive “trigger” with an “emergency brake” for a greater rapid response to market changes.
- It is based on his money management program that won him a national award. He has been using this for many years and has adapted it to TSP.
- This new system is available to you right now.
We say “available to you” because with this upgraded system it is estimated that the number of moves each month will be increased. This system also includes a more sensitive “trigger” which would give you an emergency alert any day of the week if the volatility of the market indicates danger. In times of high market uncertainty, we feel this is an important protective component.
THE RAPID RESPONSE TSP SafetyNET Newsletter ALERT SYSTEM
As part of our dedication to federal employees we have been striving to make our TSP SafetyNET alert system even more powerful. With this we have been carefully studying the potential impact of using strategies which won MSAcc and CPA Mike Hartmann the 2012 Wagner Award from the National Association of Active Investment Managers.
This new allocation system can potentially increase your optimization by having a quicker response time should there be a sudden and dramatic drop in the market as seen in the graph below. This is a back-tested study of the Rapid Response TSP SafetyNET that goes back to 1/17/2004.
We believe that this will deliver much stronger performance for you with a focus on safety. Again, however, it is essential to understand that NO system will get you out in time of sudden market shocks by anticipating the drop before it happens. As part of the Rapid Response system, we can help you get out of the market into safer funds during extremely volatile times by providing what we call an “emergency brake” which is integrated in the system.
It is for those who have been asking for a “turbo-charged” allocation system that may give greater optimization but it does require greater active participation on your part – this Rapid Response Alert system may average 2 allocation changes per month. The main advantage of you doing more frequent changes is that this system works to use relative strength strategies as well as having a more sensitive “trigger” when the market drops. Also more frequent changes may allow for greater rate of return in up markets.
We cannot go into great detail on the precise way that the system works as it is proprietary. Our award-winning market analyst, Mike Hartmann, has used this system for years in his work with clients’ portfolios and has modified this very successful system to work with TSP.
This is a brief overview of the results of the back-testing performed on the new Rapid Response System.
*Utilizes the award winning ASD methodology and has been thoroughly back tested back to 12/31/2003.
*All three fixed income funds total return was beaten by using this methodology going back to 12/31/2003.
*All equity funds total return was beaten by this using this methodology going back to 12/31/2003.
*Loss risk on equity portion of investment has been reduced by about 75% when compared to C fund, going back to 12/31/2003.
*100% Equity allocation rate of return would have yielded 10.28% annual compound rate of return with only a 12.5% maximum peak to trough drawdown, as opposed to 54+% drawdown on C fund.
All of us at TSP SafetyNET are constantly working hard to improve the quality of our service to you. This exciting addition is a reflection of our dedication to provide the very best TSP help in the market today.