Good evening, TSPwire Tactical Investor!

On Friday stock markets struggled amid rising oil and gas prices, and a mix economic news that did little to temper fears about a slowdown. SP 500 (C Fund) gained 0.2% for the week and about 1% for the month of May.

Stocks sank last week as oil prices hit an all-time high around $135 a barrel and investors backed off ahead of a long Memorial Day weekend. But this week, stocks have been on the rise as the dollar has firmed up and oil prices have backed off a bit.

A Thursday report showed first-quarter GDP growth was better than initially reported, while Friday’s economic news was mixed. Reports showed an uptick in personal income, in-line inflation, weaker consumer sentiment and continued weakness in manufacturing.

At this point we do not see a reason to change our allocation. For the next week we will keep it at the same level: 50% in I Fund and 50% in C Fund.