Good evening, TSPwire Tactical Investor!

Friday selloff leaves the stock market in a rut, and it may go in deeper before it digs itself out.

With market unable to muster any conviction about the future, it has been trading in a narrow range despite violent moves in both directions. The pattern continued this past week. After a burst of optimism at the start, stocks tumbled as fears bubbled anew about credit markets and the economy.

In the week to come, the economic calendar is heavy, headlined by the February payrolls report on Friday. The schedule is light on earnings news, which has been mostly good outside of the financial sector, meaning the market might continue its downslide.

So far our long-term outlook on stock market did not change. After this week’s downturn valuations of stocks in S&P 500 (C Fund) became even more attractive. For now we are staying with our current allocation: 50% in C Fund and 50% in I Fund.