Good afternoon, TSPwire Tactical Investor!

The Standard and Poor 500 index (C Fund) rose 0.5% on Friday, off 2.1% for the week. It was helped Friday by a 3.8% gain in its financial sector, which nevertheless ended with a full-week decline of 7.1%. SP 500 bounced back several times as they approached their November 20th bear-market lows, but remained down nearly 8% in 2009.

Asian and European shares (I Fund) closed lower, ending a downbeat week. In Europe, sharp losses in bank and insurance shares helped pull down major indexes.

Energy and financial companies help lead small caps (S Fund) higher Friday, though continued concern about the economic outlook muted both sectors' gains. On broad basis, Friday's move pointed to some negative sentiment toward small stocks. Defensive sectors such as health care and utilities slid, while the beaten-down financial and energy names led most of the gains. Overall, the small-cap index (S Fund) underperformed the larger SP 500 (C Fund) once again for the week and remained lower for the last month, three months and 52 weeks.

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.