Good evening, TSPwire Tactical Investor!

Last week our predictions were right on point S Fund jumped +1.1% and I Fund went up 0.93%! Some analysts believe that since dollar stays at the very low level against British Pound and Euro it can help C Fund because it has a lot of large companies that are selling their products internationally. (Note: weak dollar against Euro makes prices more attractive for buyers in Europe.) We tend to disagree with that prospective, because it covers only one side of the coin. Japan represents second force that significantly affects C Fund. Japan Yen slid down against all major currencies including Euro and Dollar so that makes Japan products even cheaper on foreign markets. Just think about all hi-tech electronics and cars that get from Japan. Hondas and Toyotas already got a huge market share; and we can see the first results of that impact in quarterly reports of American automakers - Ford, Chrysler and GM reported drop in their sales. Weak yen can cause even more troubles to those three companies. In that prospective we believe, that  S Fund (Small-cap companies) has more potential than C Fund (Large-cap companies) at least in short-term.

Our models yielded similar results to last week - S Fund got the best score and ended up with STRONG BUY signal. I Fund came second with BUY signal. C yielded HOLD signals and F Fund was downgraded to SELL. Based on the results we decided to keep our allocation at 50% in S Fund and 50% in I Fund.