Best Two-Month Start for Stocks in Decades
Based on the two leading indices for stocks, the stock market ended in February with its best two-month start for a year in three decades.
The C fund is up 11.48% so far this year. The S fund is up 17.20% for the year-to-date. The S fund has never had a return in February that equaled or exceeded 4.98%. (The S fund started in 2000.)
The S fund also had the highest rate of return in February (4.98%) and it also has the highest 12-month return (6.96%).
Monthly and 12 Month TSP Returns
| G Fund | F Fund | C Fund | S Fund | I Fund | |
|---|---|---|---|---|---|
| Month | 0.20% | -0.06% | 3.21% | 4.98% | 2.55% |
| YTD | 0.43% | 1.00% | 11.48% | 17.20% | 9.32% |
| 12 Month | 2.93% | 3.32% | 4.66% | 6.96% | -5.05% |
| L Income | L 2020 | L 2030 | L 2040 | L 2050 | |
|---|---|---|---|---|---|
| Month | 0.80% | 1.06% | 2.00% | 2.36% | 2.68% |
| YTD | 2.64% | 3.62% | 7.02% | 8.36% | 9.53% |
| 12 Month | 2.97% | 2.76% | 2.62% | 2.47% | 2.34% |
TSP Facts
January hardship withdrawals went up 25%. This is probably due to the partial government shutdown. Requests for new loans were stable though.
Average Balances
CSRS participants have the highest average balance in the TSP ($146,642) but only 314,193 employees compared to 3,396,291 FERS employees in the TSP.
Here are the breakouts:
| Total Participants | Average Balance | # of Roth Participants | Average Roth Balance | |
|---|---|---|---|---|
| FERS | 3,396,291 | $138,933 | 531,665 | $12,952 |
| CSRS | 314,193 | $146,642 | 9,982 | $19,905 |
| Uniformed Services | 1,334,581 | $25,602 | 534,192 | $8,487 |
Interfund Transfers
January was a great month for the stock market.
TSP participants withdrew $924 million from the G fund in January. They also withdrew $67 million from the F fund and $26 million from the I fund.
On the positive side, TSP investors transferred $289 million into the C fund; $557 million into the S fund; and $171 million into the L funds.
2019 is off to a great start for TSP investors. It is very unlikely this rapid rate of growth will continue. No one can predict with certainty what the short-term results will be in the stock market. But, with the significant year-to-date returns, it is possible a correction could occur at any time. Hang on to your hats—we may be in for a volatile year in stocks!
