Good afternoon, TSPwire Tactical Investor!

For stock market, 2009 began much as 2008 ended. Standard and Poor 500 (C Fund) and Russell 2000 (S Fund) posted their biggest January losses on record.

The financial sector remains the pivotal axis for the market, because traders believe economic and stock-market stability are not possible until fears about solvency of banks have receded. Financial stocks slid Friday after CNBC reported that the latest bank rescue from the Treasury Department may have stalled in planning stages.

The Federal Reserve under Ben Bernanke has already cut the federal-funds interest-rate target to as low as it can be, hovering near 0%, so at the past week’s meeting there was no rate cut. Investors remain wary overall.

This past week was full of grim news and we selfishly hoping that stock markets will stay at this depressed level for a while so we could build up our positions at such bargain prices. We will keep our allocations at 25% S Fund, 25% C Fund and 50% I Fund.