C Fund Skyrockets in October
By Ralph Smith
Thursday, October 31, 2002
While the official results of the C Fund return for the month of October won’t be out until the week of November 4, the index fund which is the basis for the C Fund finished up more than 8% for the month of October.
It has been a miserable year (or three) for investors and the high monthly returns will certainly be a welcome relief to the TSP investors throughout the government. While the positive returns don’t match the loss of more than 10% in September, some investors feel that the long bear market may be over.
To put this into perspective, how long has it been since the C fund returned more than 8% in a month? If you guessed March 2000, you would be right. That’s right--the month which was the zenith of the stock market bubble.
We won’t speculate on whether the bear market has ended. Just enjoy the feeling of a big positive return for the past month—and hope for more of the same in December.
By the way, financial advisors often tell investors not to try and time the market but, instead, to steadily invest in funds or stocks on a regular basis. Those that have invested in this way through a regular payroll deduction, may find that their investment pays off well in coming months. While no one can predict the future, investors that pulled money out of the C Fund may find they sold at a low point in the market.
Remember that this is not the official return for the C Fund. That figure will be out next week and we will provide more information when that final number is available.
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