Good afternoon, TSPwire Tactical Investor!

A new fear is helping fuel the latest stock-market rout: that booming global growth may have trouble pulling US markets out of their swoon this time around.

Over the summer, when shaky credit markets first sent US stocks lower, strong economic growth in China, India and Europe, together with intervention by Federal Reserve, reassured investors and sent them back into stocks, pushing US market indexes to new highs. Now, big financial companies like Citigroup, Merrill Lynch, Morgan Stanley and Wachovia are taking multibillion-dollar write-offs linked to the credit market turmoil. The Fed, meanwhile, is warning that US economic growth is likely to slow. At the same time European growth prospects have weakened, and oil has continued to climb toward $100 a barrel.

Those factors have left investors to wonder whether the future interest rates adjustments and economic power of China will save US stocks.

Base on results of our models we decided to rebalance our portfolio and stay with the same distribution: 30% in S Fund, 20% in C Fund and 50% in I Fund.