Good evening, TSPwire Tactical Investor!

Another brutal week on the Street… Investors ran away from signs that credit crunch is squeezing Main Street sending stocks tumbling. The blue chip average (C Fund) went down 2.8% last week. The reason behind drop on Friday was a Labor Department report that showed that nonfarm payrolls fell by 63,000 in February after dropping 22,000 in January.

Crude oil gained $3.31 a barrel, or 3.3% for the week to $105.15.

Analysts said stocks could continue to move lower unless the credit markets recover soon. The Federal Reserve stepped up its efforts to put a halt to the downward spiral Friday. The central bank plans to inject more cash into the financial system by increasing the size of its loan offerings from $60 billion to $100 billion. Because of the fact that stocks’ valuation became even more attractive last week and the assumption that US dollar will continue to slide down we decided to keep our current allocation: 50% in C Fund and 50% in I Fund.