On Wednesday Feds decided to keep short-term interest rate steady at 5.25%. In its statement the Federal Reserve acknowledged that it was more concerned about the slowing economy than it had been previously. Investors took that as a sign that the bankers are no longer looking to raise rates and even might start cutting them by the end of the year. Those assumption helped to boost markets last week and same trend most likely will continue in the week ahead.

We ran our financial models and calculated new scores for TSP Funds. Results changed dramatically since the last week. I, S and C Funds triggered BUY signals all over again (FYI - I Fund got the best score). F Fund was downgraded from BUY to HOLD.

Based on results for the next week we decided to allocate 35% in I Fund, 25% in S & C Funds and  15% in F Fund.

Note: historically stock market corrections took 8-12 weeks to complete. Currently we are entering week 5 which means that we can expect some turbulence on the market at least for another 4 weeks. Exactly because of those concerns we decided to keep 15% in F Fund.