Good evening, TSPwire Tactical Investor!

Rough days for the markets have a way of converging around the end of a quarter, particularly since the credit crunch began. With one more day before the end of the second quarter, the Dow Jones Industrial Average on Friday fell 0.9% (19.9% from its October 2007 record – 20% constitutes a bear market).

In the latest quarter, investors weary of persistent pressure from credit, housing and commodities markets have been pulling money from mutual funds and hedge funds – forcing firms to sell stocks and other liquid assets to raise cash.

The good news is that overall market now is beginning to look more attractive based on any number of metrics. For example, the SP 500 (C Fund) now trades at a price-earnings multiple of about 15 times this year’s expected earnings, which is lower than the 10-year P/E average of 18.7 meaning that stocks in SP 500 are trading at cheaper level.

For the next week we are keeping it at the same level: 50% C Fund and 50% in I Fund.