*                         6/22     6/29     7/6      7/13/26
S&P 500 Index             7500.58  7354.02  7483.24  7575.39
Trailing 12 month PE      33.21    32.24    32.15    32.45
Trail Earnings yield      3.01%    3.10%    3.11%    3.08%
Forward 12 month PE       22.56    21.17    20.18    21.37
Fwd Earnings Yield        4.43%    4.72%    4.96%    4.68%
90 day tbill yield        3.83     3.83     3.82     3.85
10 year tbond yield       4.46%    4.38%    4.49%    4.56%
Arezi Ratio               1.27     1.23     1.23     1.25
Fed Ratio                 1.01     0.93     0.91     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 58%
stocks, 42% cash this week.

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

A composite allocation may start with the Arezi formula and subtract 10%
for each bearish indicator. The current target allocation is 38%.

An alternative allocation, using S=120-30*Arezi Ratio and the first
two of the other timing indicators, produces a target of 73%.

Elan