USA Briefing: U.S. productivity slowed over the past two years. If the trend continues, it could hurt stock prices and make economy more inflation-prone. | Consumer spending and personal income rose last month, helping offset a housing slump.

Europe-Asia Briefing: Euro-zone data signal more growth. | China Central Bank raises growth forecast for '07 to 10 percent. Japan's CPI dropped for the first time in 10 months which is weakening the Bank of Japan's case for raising interest rates in the near future. | Tension between Iran and England spiked oil prices.

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

Based on results for the next week we decided to allocate 75% in I Fund and 25% in S Funds.

Note: historically stock market corrections took 8-12 weeks to complete. Currently we are entering week 6 which means that we can expect some turbulence on the market at least for another 3 weeks.