Good evening, TSPwire Tactical Investor!

The likelihood that the U.S. in a recession appeared to increase Friday, following weeks of hopes that the country might be skirting one.

Unemployment rose sharply and payrolls shrank for the fifth consecutive month. The economy news came on a day that oil surged to record prices, the dollar weakened and the Dow Jones Industrial Average plunged nearly 400 points. The deteriorating job numbers led markets to scale back the odds that the Federal Reserves will boost short term interest rates this fall to fight with inflation.

The jobless rate posted its largest one month gain in two decades, rising to 5.5% in May from 5% in April. The rise in unemployment has been accompanied by higher food and energy prices.

This week we will keep our allocation at the same level: 50% C Fund and 50% in I Fund.