Good afternoon, TSPwire Tactical Investor!

In the last full trading day before Christmas, stocks brought joy to the investment world, delivering the December boost investors had hoped for. Sources of holiday cheer included strong earnings, signs of healthy consumer spending and a possible capital infusion for Merrill Lynch, one of several Wall Street firms struggling with losses on mortgage-related investments.

Friday’s broad-based rally more than offset declines on Monday. Nearly three times as many stocks listed on New York Stock Exchange rose as fell.

The increase in consumer spending sparked renewed optimism about demand for energy, which helped send oil futures up $2.25 to $93.31 a barrel on the New York Mercantile Exchange.

Investors say the week to come, which includes the Christmas holiday and a shortened trading day on Monday, is likely to be quite one in the markets. Some end-of-the-year issues could come to fore, such as investors funding tax-advantaged retirement accounts.

Base on results of our models we decided to stay with the same distribution: 30% in S Fund, 20% in C Fund and 50% in I Fund.