Mid-Month TSP Report: Most Stock Funds Show Strong Results
By Ralph Smith
Thursday, June 16, 2005
So far, most TSP investors will be pleased. As you can see from the statistics in the TSP corner, the S fund is continuing to do very well. It is up about 6.5% in recent weeks. That result will surprise some analysts as small company stocks often do poorly at this point in the economic cycle.
The C fund has also done well this month and is up 3.68% in the past several weeks. Unfortunately, the I fund has not done as well and it is the only fund that shows a negative return of 0.2% in recent weeks.
The bond funds have not done poorly either. The safe and steady G fund shows a gain of 0.37% and the F fund is up 0.76% since mid-May.
Domestic stocks have fared well as fear of rampaging inflation has diminished and the financial reports of some companies have been strong. Housing starts have also remained relatively strong in the face of rapidly escalating prices in recent years. The price of oil has gone up in the past few days which has had a dampening impact.
On the international front, the value of the dollar has gone up as the Euro dropped with the news that voters in France and the Netherlands rejected the proposed constitution for the European Union.
In short, there are some problems in the economy, as always, but the positive news has demonstrated that the American economy is continuing to grow at a moderate pace. TSP investors that spread their investments throughout the several available funds are likely to sleep better at night instead of trying to guess what events may occur to create a disproportionate impact in one group of stocks or bonds.
In gauging how you should invest your TSP funds, check out the "Risk Tolerance Questionnaire" from PBS. You can use the results of this questionnaire to assist in making your investment decisions. Check out the monthly PBS report (its free) and how it relates to the questionnaire results.
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Posted: June 21, 2005 2:53 PM
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