Good afternoon, TSPwire Tactical Investor!

Stocks ended a turbulent week with a second consecutive day of modest gains, despite another drubbing for big banks. SP 500 (C Fund) rose 0.8% on Friday, though it was down 4.5% for the week. Some traders said they were reluctant to buy until the stock market can rally on improving economic data rather than new government assistance to banks.

Continued concern over prospects for a stalled banking system led small-stock (S Fund) investors to sell industrial stocks, while even the buying suggested economic fears remain front and center. International stocks (I Fund) logged first gain in 8 days. European shares rose Friday for the first time in eight sessions, with banks and oil producers standing out, as renewed efforts to shore up the financial sector bolstered sentiment. Asian markets also finished higher, recovering some of the ground lost in previous session, although most still ended the week lower.

The euro gained ground against the dollar and the yen as risk appetite returned to global financial markets after U.S. government extended its efforts to support the banking sector. But common currency failed to sustain its early Friday gains, as investors turned cautious ahead of the long weekend.

Treasuries were lower Friday but off their worst levels as government stepped up its already aggressive efforts to aid the financial system and get the economy back on track.

Overall fundamentals of our valuations did not change - all stock funds (i.e. C, S & I Funds) are available at very attractive prices. Buy! Buy! Buy! We would like to set our new allocation at 25% S Fund, 25% C Fund and 50% I Fund.