I've been amazed at how well the markets have been doing. Ever since the markets began recovering from the Great Recession, they have been going up and up and up. Just in the last year alone the DOW has shattered several records.
It's been wonderful watching my TSP account (government version of a 401(k)) steadily climbing for such a long time. For quite a few years now I've been contributing the maximum allowable amount to both my TSP account and my Roth IRA. But lately I've been wondering how much longer the market will continue to do well. I think we're long overdue for a market correction, and although I don't have a crystal ball I've been having the feeling that it might happen this year. Even MMM himself has said, and I paraphrase, "I know there's a market crash coming because there's always a market crash coming"
As a result I'm thinking about dropping my TSP contributions all the way down to 5%, which would be just enough to get me the full match. When the markets crash, I would then boost my contributions all the way back up to the maximum. I would continue to fully fund the Roth IRA.
I've been a federal employee for almost 16 years and in almost all of those years contributed the maximum, in good markets and bad. Current TSP value is 367K. Fund allocation is currently a fairly conservative 35% stock, the rest in bonds and treasuries. Looking to retire in a couple years or so, no definite date yet.
In 20 years of investing I've never been a "market timer", as I'm aware of the poor results that habitual market timers inevitably get. But the way the markets have been skyrocketing so quickly recently, I'm thinking about doing this now.
Advice? Suggestions? How many face punches do I get for thinking this way?