Dragged down by late-year losses, all three stock-oriented TSP funds posted losses in 2018 for the first time since 2008.
The international stock I fund finished down 13.43 percent, the small company S fund down 9.26 percent and the large company stock C fund down 4.41 percent, after December losses of 4.82, 10.7 and 9.03 percent, respectively.
The bond F fund and the government securities G fund meanwhile finished the year in positive territory, at 0.15 and 2.91 percent, respectively.
The losses in the stock funds also resulted in a losing year for each of the lifecycle L funds except for the Income fund, which gained 0.71 percent because of its heavy allocation in the G and F funds.
The returns for the other L funds were: 2020, -0.36; 2030, -3.58; 2040, -4.89; 2050, -6.02. Since the even steeper drops in 2008, the C fund had not posted a losing year while the S fund had experienced two, in 2011 and 2015 while the I fund had experienced three, in 2011, 2014 and 2015. For TSP insight, visit https://www.fedweek.com/thrift-savings-plan/
What to Look for in 2010: The market is in a challenging situation right now, with a mix of positive and negative signals.
On one hand, the U.S. economy is nine and a half years into the second longest economic expansion in U.S. history. If we reach July without a recession, we’ll have the longest period without a recession on record since George Washington was president. On top of that, we can see a lot of clear “late cycle” elements in place right now, including high corporate debt levels, rising interest rates, and a flat yield curve.
Read more at: Volatile Finish to 2018 for the Markets; Rough Month for TSP
