Good afternoon, TSPwire Tactical Investor!
Stocks ended a third consecutive week of gains with a broad decline as drop in oil prices hurt energy companies and financial stocks fell after a bank executive said business this month has been tougher than earlier in this year. The SP 500 index (C Fund) fell 2% on Friday but ended week up 6.2%.
For the past three weeks, small-caps have been on a tear, with Russell 2000 (S Fund) tacking on 25% - a bull market, by one common definition. A gain in small-cap stocks is typically a reflection of more steadfast belief in the economy, but many investors say they are still only getting into securities they can get out of easily, such as exchange-traded funds and most liquid of companies.
For the next week we'd like to keep our allocation at the same level: 25% S Fund, 25% C Fund and 50% I Fund.