Those who sell stocks at a loss lock-in in their losses when the sale occurs. Over time, the stock market has always recovered. A bear market can last for an extended time, and when that happens many investors will lose a great deal of money if they sell at the wrong time. The bear market in 2007-2009 lasted about 1.3 years and the S&P 500 went down by 50.9% during that time. A Bear Market? Lock-In Losses Now?Ī “bear market” is a sustained period of stock prices generally going down and one that is often triggered by a 20% decline from near-term highs. I also don’t know any better than the next person what the stock market is going to do now or in the future. A qualified financial advisor who looks at a person’s total financial and personal situation is a much better source for advice and guidance than asking a person who does not know you or your situation. The honest answer is that I have no idea about your personal financial situation and tolerance for risk and stock market volatility. Since publishing The Sky is Falling! Time to Sell Your TSP Stock Funds? on February 28, a few readers have asked me this type of question: “Should I sell my TSP stock funds now and put my money in the G Fund instead?” If stock prices continue to fall, as happened 20 years ago, chances are the same scenario will unfold.
In fact, the C Fund went up every year from 2009-2017 resulting in huge gains for those who kept their money in the stock funds and, presumably, kept investing despite the rising or falling stock market.
Almost $1.2 billion moved out of the I fundīut, despite more drops in the market before it ended, and the amount of TSP contributions declining as the market dropped, the C Fund came back in 2009 with a return of more than 26%.More than $1 billion moved out of the C fund.Almost $3.5 billion moved into the G fund.Here is a quick summary of some of the more significant money transfers that month: Unfortunately, we don’t know (and forecasters, economists and market gurus can’t predict) the timing, length or magnitude of future Bear and Bull Markets.In September 2008, TSP participants transferred close to $3.5 billion into the G fund. Rising markets (Bull Markets) are eventually followed by falling markets (Bear Markets). Market declines are always going to happen at some point. These and other risks have led some commentators to forecast significant market declines in the future. Wars, revolutions, terrorist attacks, climate disasters, etc.Reduction in government stimulus (fiscal policy).Change in Federal Reserve monetary policy (QE).There are many risks to current TSP Fund values, including: The bond fund returns were less than the rate of inflation. For the first six months of 2021, the F Fund declined 1.5% and the G Fund increased only 0.6%. Returns include reinvestment of all income and do not account for taxes. Returns are rounded to tenths of a perfect. All investments involve various risks including loss of capital and volatility. Past Performance is no guarantee of future performance. An investment cannot be made directly into an index. One, three, five, ten, and fifteen-year returns are calculated as Compound Annual Returns. YTD and 1-year returns are Total Return for the period. The S and I Funds peaked a few days earlier. C Fund share prices hit a record high on June 30. COVID-19 cases, increased vaccinations, economic re-openings, low interest rates (as a result of Quantitative Easing (QE) by the Federal Reserve) and fiscal stimulus led a surge in the economy. Share prices for the TSP stock funds (C, S and I) rose to record highs during the second quarter as a substantial decline in U.S. Here it is: TSP Stock Funds Reach New Highs During the First Half of 2021 I asked him to submit a guest column plugging the show. If you have questions send them to me at so the half of our team that knows what he’s talking about can answer them on air. Which is why we called on financial planner Arthur Stein to co-host today’s Your Turn radio show.
#TSP SHARE PRICE FULL#
For a full picture of the TSP’s makeup as of June 30, click here.īut as they say, there’s always something. And by staying in stocks and continuing to buy during bad patches, like the Great Recession.
#TSP SHARE PRICE PLUS#
Most of the TSP’s 98,000 plus millionaires hit the 7-digit mark by investing for the long haul (an average of 29-plus years), and investing largely in the C, S and I funds. Insight by Carahsoft: Learn from IT experts as they outline the significant impacts cloud and 5G have on implementing zero trust architecture in this exclusive executive briefing.
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