The next recession and your TSP

Just about everybody with money in the stock market knows that the current, record long bull market has got to end someday. It came close to a 20% correction last year but the worst didn’t happen. The China trade situation, troubles with Iran, you name it. For some, every silver lining has a cloud. What most experts agree upon is timing is problematic. What’s happened before is almost certainly going to happen again. Maybe better. Maybe worse. The problem is — when? And if you solve that, what next? Do you get out of stocks, as hundreds of thousands of TSP investors did in 2009, if the market corrects or crashes? Do you view a recession as a buying opportunity, with share prices down? Or do you wait until the market comes back, then return? And if that’s the plan, when do you return? Thousands are still in the treasury securities G-fund, even though — with many hiccups — the market has been booming since it bottomed out in early March 2009.

Did you, like many people, think that if Donald Trump was elected, the markets could tank? If so, bad guess. The Wilshire 5000 Total market index says that as of last week, the Wilshire 5000 has gained 34.9% — or $9.1 trillion on paper since Inauguration Day, Jan. 20, 2017.

The figures below, courtesy of the Wilshire Factoid, represent a one-day photo of the U.S. Stock market. They show how different the market is day-by-day depending on when you take the snapshot.

Check this out:

Wilshire 5000 Best Day in a Month Pushes Week to Small Net Gain; Day Jumps $300 Billion

December 6, 2019 FACTOIDS:

The Wilshire 5000 Total Market Index (W5000) closed today at 32,039.01 ending the week up 13.15 points or 0.04%.

This represents a paper gain for the week of less than $25 billion.

The Wilshire 5000 rose for the second week in a row and the eighth time in the past nine weeks.

For the day, the Wilshire 5000 was up 281.10 points or 0.89%.

This represents a paper gain for the day of approximately $300 billion. 

Today’s Wilshire 5000 gain was the best day since November 1, 2019 gained 321.58 points or 1.04%.

The Wilshire 5000 rose for the third day in a row and the seventh time in the past ten trading days.

For the month, the Wilshire 5000 index is up 0.04% or approximately $25 billion.

For the quarter, the Wilshire 5000 index is up 5.56% or approximately $1.8 trillion. 

For the year, the Wilshire 5000 index is up 24.42% or approximately $6.6 trillion. 

Since the recent, December 24, 2018 market low, the Wilshire 5000 index is up 32.66% or approximately $8.3 trillion.

Since November 6, 2018, the close on the day of the 2018 Election, the Wilshire 5000 has gained 12.55% or approximately $3.8 trillion.

Since January 20, 2017, the close on the day of the Trump Inauguration, the Wilshire 5000 has gained 34.93% or approximately $9.1 trillion.

Since November 8, 2016, the close on the day of the 2016 Election, the Wilshire 5000 has gained 44.54% or approximately $11.4 trillion.

Since December 15, 2015, the close before the Federal Reserve raised interest rates for the first time since June 29, 2006, the Wilshire 5000 index is up 51.85% or approximately $12.6 trillion.

Since September 12, 2012, the close before Bernanke revealed QE3, the Wilshire 5000 index is up 113.05% or approximately $19.6 trillion.

Since August 26, 2010, the close before Bernanke revealed QE2, the Wilshire 5000 index is up 191.98% or approximately $24.2 trillion.

The Wilshire 5000 is up 367.15% or $30.2 trillion from the Financial Crisis low of March 9, 2009.

Since the old, October 9, 2007 market high, the Wilshire 5000 index is up 102.69% or approximately $20.3 trillion. 

Nearly Useless Factoid

By Alazar Moges

Sending out holiday cards this season? Though there are many ways to spread the holiday cheer to loved ones these days, many Americans still like going the old fashion route of sending their warm wishes via mail. Much of that mail will find its destination by way of a Postal Service vehicle. One of over 232, 000 postal vehicles. That number makes USPS the largest civilian fleet in the country, and one of the biggest in the world.

Source: USPS

Copyright © 2024 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.