TSP funds reported a vigorous performance in Q1 of 2024, the most remarkable since 2019. However, barring one, all funds took a downturn in April due to erratic market fluctuations. Despite this, the overall TSP fund performance fell commendably short of disappointing, thanks to the robust Q1 performance.
Notably, the C Fund started 2024 strongly with significant gains of 3.22% in March and 10.55% year-to-date. The S Fund soared 6.00% in March and had a quarterly increase of 13.23%. Although the C Fund experienced a decrease in April, it remains up for the year at 6.03%. Despite harsh conditions in April, historical trends suggest a possible recovery, emphasizing the importance of long-term investment strategies.
Apart from the G Fund, all TSP Funds recorded decreases in April.
Q1 surge buffers April TSP fund slump
The S Fund and I Fund dropped by 6.46% and 3.17%, respectively, but both remain positive for the year. Notwithstanding these results, investors need to consider such fluctuations when investing.
Inflation and rising interest rates present challenges. A 1.2% surge in the Department of Labor’s employment-cost index in the first quarter, coupled with wage pressures and increased consumer prices, dampened efforts to curb inflation. Rising commodity prices, specifically in oil and lumber, intensify this inflation. While the Federal Reserve maintains that current inflation is temporary, the impact on the economy remains a concern.
At the end of March 2024, TSP’s total assets rose to $895 billion. Despite the April downturn, the impressive performances of TSP funds provided a much-needed financial break for FERS employees. The average TSP investor balance soared from $120,825 in December 2023 to $127,376 by the end of March 2024, signifying a strong performance in an unpredictable market.
