This morning we got our first read on our economy. 1st quarter GDP came in at a 2.5% growth rate well below the estimated 3.0% growth rate. This was not a surprise as most economic reports were pointing to slower growth than anticipated. The most interesting aspect of the report was that incomes fell 5.3% from the previous quarter. This does not bode well for the future as spending is the largest component of the US economy. As we have stated several times in our past quarterly commentaries, the U.S. is growing, but at a slow pace. Wall Street expected the GDP to be the best in the 1st quarter, but with this tepid pace we will be lucky to get a 2.0% GDP this year. The report today affirms our continued slow growth forecast. Equities will continue to trade at a discounted P/E than the historical average of 15 times earnings.