Good evening, TSPwire Tactical Investor!

The US dollar marched higher again on Friday, continuing a development that could ease inflationary pressures but also could slow a US export boom. Just a couple of months ago, policy makers were alarmed about how far the dollar had fallen. Now evidence is building that its seven-year slide may be ending. Over the past month, the US dollar gained 8% against the euro and the pound, and nearly 6% against the yen.

When a currency strengthening, it’s a usually a sign of health in the underlying economy. In this case, the dollar raise is a sign of weakness in other economies. Reports in recent days showed that the economies in Japan and Europe contracted in the second quarter, and the UK slowed.

Fears of a global economic slowdown continued to push raw materials prices lower Friday, leaving stock in neutral. Most companies traditionally benefit whenever a drop in everything from copper to crude oil to wheat promises to lower their production costs.

For the next week we are keeping our allocation at the same level:: 50% C Fund and 50% in I Fund.