Right as we predicted F Fund prices were boosted by the emergency rate cut that was announced by Federal Reserve Board this Monday. Investors on Wall Street widely expect another 0.25-0.5 rate cut next week.

According to CNN.com congressional leaders and Bush Administration officials have reached a deal on economic stimulus package that would send checks to most taxpayers in an effort to keep economy from falling.

Both of those developments do not change our long-term stock market outlook. We are positive that recent developments will spark inflation in the USA. Our budget deficit will also increase as a direct outcome of the rate cuts and economical stimulus package. C and S Funds most likely will get a short-term boost but in a longer run I Fund should definitely outperform them primarily because of the falling dollar. F Fund will be going up as long as Feds will continue their rate cuts.