Good afternoon, TSPwire Tactical Investor!
The unemployment rate rose sharply in December to its highest level in more than two years, raising the likelihood of recession as the housing slump begins eating away at the previously sturdy household incomes that had been a pillar of the economy. The rise in jobless rate to 5% from 4.7% in November and an increase of only 18,000 in nonfarm jobs, the worst performance in four years - adds pressure on the Federal Reserve to swallow its concerns about inflation and cut interest rates more steeply later this month.
We'd like to re-align our portfolio to benefit from the rate cut: 25% in F Fund, 25% in C Fund and 50% in I Fund.