Thrift Savings Plan

[baja6string]

Zerohedge’s discussion of Russell 2000 is interesting, but not new. There have been a few similar articles over the years.
Apr 2014: RUT PE is 102.
http://davidstockmanscontracorner.com/now-comes-pe-ex-neg-earnings-or-why-the-russell-2000-is-trading-at-102x-reported-eps/
Mish Shedlock noted the Russell 2000 PE was over 3000 in 2015. https://mishtalk.com/2016/03/30/are-stocks-cheap-diving-further-into-the-russell-2000-sp-500-and-nasdaq-pe-ratios/

One needs to reflect on the Russell 2000.

Here’s some info from Seeking Alpha…
“The Russell 2000(RUT) is an inferior index, made up of inferior stock and for this reason alone you should not be investing in it. It is an index built up of the bottom 2/3 of the Russell 3000(RUA), contains the worst performing stocks on the market, represents a relatively small amount of actual market capitalization…” Thomas Hughes
http://seekingalpha.com/article/2861666-dont-invest-in-the-russell-2000

The article also noted that the Russell 2000 contains only 8% of the total capitalization of the market.

John Hussman, PhD (Hussman Funds Weekly Market Commentary) has been saying for more than a year that the Median PE for the entire market is now higher than it was during the dot.com bubble. (Median is the middle – half are higher half are lower.) Those high PE stocks have to be somewhere and it seems logical that they would be in the Russell 2000.

Last, if we just figured this out, you can be sure that the Wall St. experts are well aware of it.

The market continued up in 1998 and 1999 with PE’s in the stratosphere until the FED raised rates at several successive meetings and, if I remember right, the yield curve inverted. This time it may be the FED or another crisis. On a similar subject…

Most of my indicators are looking up. I went from 30%C to 50% C today, Friday. Apparently, I missed the NOON deadline yesterday.