This morning’s meeting of the Federal Retirement Thrift Investment Board brought some sobering statistics on the Thrift Savings Plan’s performance in October. And investors continue to pull their money out of plummeting stock-based funds for the safety of the securities-backed G Fund, just as they have for most of 2008.
Unfortunately, there’s no certain relief in sight for the economic troubles that are dragging the TSP down. Yesterday Citigroup became the latest bank to receive financial assistance from the federal government. Stocks rose today with the news of Citigroup’s bailout, as well as president-elect Barack Obama’s proposal for a $700 billion jobs and stimulus package.
But the Washington Post quotes financial analysts as saying “today’s rally could be short lived:”
The Citigroup bailout is just the latest of several government efforts to stabilize the financial sector, they said. Each was met with a rally and followed by a sell-off as investors turned their attention to another weakness in another part of the economy or financial sector. Obama’s proposed bailout will take months to pass and even longer to implement, they said.
“I hope this lasts, but I wouldn’t hang my hat on it,” said Win Thin, senior currency strategist for New York-based Brown Brothers Harriman & Co.
How is the ongoing economic crisis affecting your retirement plans? Are you delaying your retirement, or scaling back your expectations? We’d like to hear from you. Send me an e-mail at slosey@federaltimes.com, or post a comment below.
