Good evening, TSPwire Tactical Investor!

After beginning the week with a bounce, stocks ended it with a slid, dragged down by renewed worries about the economy and credit markets.

Stocks fought to rebound from Thursday's decline but failed, spending most of Friday in the red after a raft of troubling economic news. The University of Michigan said its measure of consumer sentiment plunged to the lowest level in 16 years. The New York Federal Reserve's index of regional manufacturing activity sank into negative territory, its biggest one-month drop on record.

Together with a tepid industrial production reading from the Fed and a Labor Department report of surging import prices, the data sparked fresh fears that economical problems might be deep-rooted.

Data that we are getting indicates that we might be already in the middle of recession. Feds might continue cutting interest rates which will push dollar even lower against other currencies. C Fund and I Fund both can benefit from the falling dollar and because of that we would like to keep our allocation at the same level: 50% in I Fund and 50% in C Fund.