Feds rethought significance of correlation between low unemployment and inflation and we tend to agree with their conclusion. These days changes in rates of currencies, central bank policies and oil prices affect investors’ perception and as a result stock prices far more then low unemployment.

On a separate note according to WSJ analysts the estimate of fourth-quarter GDP is expected to be revised down to around 2.2%, from the advance reading of 3.5%, mainly because of December trade gap was larger then expected. January durable-good orders, a measure of capital spending, are forecasted to decline.

Target: C, S Funds / Short-term: Negative / Long-term: Negative

            I Fund / Short-term: Positive / Long-term: Neutral