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Sudden, daily shifts in the stock market have left an impact on the TSP in February. Most TSP funds took a sharp dive last month due to volatile conditions, but it’s not necessarily a bad thing, Klingler said.
“The market as a whole, it does go up and down,” he said. “The market will correct; it’s only a matter of time. One of the keys to investing is you want to buy low and you want to sell high. We’ve had nine years of run-up, nine years of pretty consistent returns associated with the market, so most people would argue that we’re probably closer to the higher end of the market than we are to the lower end.”
It’s unclear exactly how the stock market will continue to play out this year. Only the TSP’s G fund managed to bring in a positive return last month, and TSP participants are beginning to show some caution, Klingler said.
“People are questioning whether they’re in the right diversified portfolio,” he said. “People are beginning to get a little more concerned about risk than they had been back in January, but at the end of the day, there are still more people jumping into the market with both feet trying to get involved in the gains of the market.”
The L funds are an easy option for TSP participants, Klingler said,
Nicole Ogrysko is a reporter for Federal News Network focusing on the federal workforce and federal pay and benefits. Follow @nogryskoWFED