Good evening, TSPwire Tactical Investor!

U.S. economy started first quarter with its weakest growth in 4 years. Readings were below economists’ expectations, but some investors believe that we scratched the bottom and should move upward in the near future. The strong global economy is yet another reason that economists are especially upbeat about.

U.S. Dollar at the 4-year low against Yen and Euro. Low dollar is a gift to investors. On one hand foreign investments (I Fund) appreciate in U.S. Dollar terms. On another hand goods and services become more attractive (i.e cheaper) to foreign investors. At the same time corporate earnings in Japan and Euro zone came above analysts’ expectations which is another bullish sign for I Fund.

Our financial models yielded results very similar to the last week's ones. I, C & S Funds all finished with STRONG BUY signals. F Fund was downgraded from NEUTRAL to SELL.

Based on results we decided to stay put and keep last week's allocation, i.e. 50% in I Fund and 30% in C and 20% in S Funds.