*                         6/15     6/22     6/29     7/6/26
S&P 500 Index             7431.46  7500.58  7354.02  7483.24
Trailing 12 month PE      32.90    33.21    32.24    32.15
Trail Earnings yield      3.04%    3.01%    3.10%    3.11%
Forward 12 month PE       22.35    22.56    21.17    20.18
Fwd Earnings Yield        4.47%    4.43%    4.72%    4.96%
90 day tbill yield        3.78     3.83     3.83     3.82
10 year tbond yield       4.48%    4.46%    4.38%    4.49%
Arezi Ratio               1.24     1.27     1.23     1.23
Fed Ratio                 1.00     1.01     0.93     0.91

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 59%
stocks, 41% 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 39%.

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

Elan

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