*                         2/12     2/19     2/26     3/4/24
S&P 500 Index             5026.61  5005.57  5088.80  5137.08
Trailing 12 month PE      26.34    26.44    26.77    26.56
Trail Earnings yield      3.80%    3.78%    3.74%    3.77%
Forward 12 month PE       22.83    22.65    23.06    23.18
Fwd Earnings Yield        4.38%    4.41%    4.34%    4.31%
90 day tbill yield        5.44     5.44     5.46     5.42
10 year tbond yield       4.17%    4.30%    4.26%    4.19%
Arezi Ratio               1.43     1.44     1.46     1.44
Fed Ratio                 0.95     0.97     0.98     0.97

The Arezi Ratio is the 90 day tbill yield divided by the trailing
earnings yield of the S&P500. A low ratio means that stocks are undervalued.

The 'Fed Ratio' is the 10 year treasury bond yield divided by the
forward estimated operating earnings yield of the S&P500. A low ratio
means that stocks are undervalued. Thus, a ratio of 0.71 for example
means, according to Yardeni, that stocks are cheaper than 'fair value'
by 29%.

The 'S=120-50*Arezi Ratio' formula indicates an allocation of 48%
stocks, 52% cash this week.

Other timing indicators:
The S&P index is above its 200DMA. - Bullish
We are in the Nov-Apr part of the year. - Bullish
The trailing PE ratio of the S&P is above 17. - Bearish
The treasury yield curve is inverted. - Bearish

A composite allocation may start with the Arezi formula and subtract 10%
for each bearish indicator. The current target allocation is 28%.

An alternative allocation, using S=120-30*Arezi Ratio and the first
two of the other timing indicators, produces a target of 77%.

Elan

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