Good evening, TSPwire Tactical Investor!

A slew of weak earnings reports stocked fears that profits in the next few quarters will fail to hit lofty expectations, sending US stock markets down on Friday. While investors have known for weeks that profits for the third quarter would suffer from turmoil in financial markets, many reassured themselves that a sharp turnaround would come in current quarter, helped by strong global economy. Instead, many third quarter results have fallen below even diminished expectations, and pessimistic news from companies.

According to our analysis it is too early for a full-blown market correction. Most likely markets will recover from last week’s deep fairly soon. After all considerations we decided to keep our allocation at 50/50 levels in C and I Funds.