Good afternoon, TSPwire Tactical Investor!

Stocks ended the worst week in nearly three months with a decline, as bank stocks again dragged down the broader market. The S&P 500 (C Fund) was down 4.8% for the week, also it's worst performance since the week ended November 21st. "The market is telling us it doesn't have confidence that what they (i.e. Washington) is doing to get us out of the morass," said James D. Baer, managing member at Uhlmann Price Securities in Chicago.

The Russell 2000 index on Friday finished down 0.5%, closing out the week down 4.8%. Small-cap traders continue to bet against a recovery in banking stocks. For the fifth time in six weeks, small stocks (S Fund) finished below where they started. Friday, small banking stocks led the decline, as they did in the previous down weeks.

International stocks (I Fund) behaved much better than US stocks last week. Chinese stocks rose Friday, lifting the benchmark index to a 5 1/2 month closing high and adding to the luster of Shanghai as the world's best-performing market this year. In Europe, Russian stocks extended gains to end the week up 19% as relative stability in the ruble and oil prices lured overseas funds. Japanese shares also advanced as a weekend yen boosted exporters.

For the next week we also would like to re-balance our portfolio. That way we'll sell portion of our "winners" (i.e. I Fund) and buy "losers" (i.e. C & S Funds) at cheaper price. For the next week we will keep our allocations at the same level 25% S Fund, 25% C Fund and 50% I Fund.