Aggressive Buy & Hold Opens 2023 on Top
This week: Horrible performance in 2022 put stocks and bonds “on sale” and playing catch-up in early 2023. 13 days into the new year, with stocks firm and bonds up big, diversified buy-and-hold opens on top. With another rate hike imminent, however, it would be a surprise if that lasts past the next FOMC meeting February 1st. $1.7 Trillion in new fiscal spending will not mitigate against Fed rate hikes, war, trade sanctions, an inept Fed, and an anti-business administration forever.
2023 2022 2021 2020 2019 2018 2017 2016
Aggressive G&I (AOA) 7.8% -17.9% 13.5% 10.7% 12.5% -6.2% 8.0% 3.5%
SPY Benchmark 7.4% -19.5%
Moderate G&I (AOM) 5.2% -16.4% 5.3% 7.7% 19.5% -9.9% 14.1% 5.3%
Index Moose 3.8% -16.3% 11.7% 13.2% -6.5% 5.1% 9.0% -6.0%
US Equity Moose 3.2% -7.0% 22.2% 20.9% 23.6% 1.2% 28.5% -5.6%
TSP Performance: Very Aggressive B&H Leads in 2023
Government employees invested in the Thrift Savings Plan have numerous options, but the basic decision is whether to time the market or take a diversified buy and hold approach. Market timing outperformed all diversified buy-and-hold "Lifestyle" options in four of the last six years. Economic and financial conditions can have a major impact on strategic success. Monitoring year-to-date performance is one way to know what is currently working. See the newsletter for more.
2023 2022 2021 2020 2019 2018 2017
TSP Aggressive Growth (L2060) +8.8% -17.6% +19.9% new
TSP Growth (L2050) +7.5% -15.0% +16.3% +14.8% +23.3% -6.0% +18.8%
TSP Growth & Income (L2040) +6.6% -12.9% +14.5% +13.2% +20.7% -4.9% +16.8%
TSP Moderate G&I (L2030) +5.6% -10.3% +12.4% +11.3% +17.6% -3.6% +14.5%
TSP Moose +4.2% -3.4% +13.3% +21.8% +14.9% +6.5% +21.0%
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