*                         9/14     9/21     9/28     10/5/26
S&P 500 Index             7656.98  7650.50  7743.41  7722.72
Trailing 12 month PE      25.93    26.10    26.26    26.15
Trail Earnings yield      3.86%    3.83%    3.81%    3.82%
Forward 12 month PE       19.05    19.10    19.37    18.93
Fwd Earnings Yield        5.25%    5.24%    5.16%    5.28%
90 day tbill yield        4.07     4.14     4.24     4.19
10 year tbond yield       4.96%    5.01%    5.17%    5.28%
Arezi Ratio               1.05     1.08     1.11     1.10
Fed Ratio                 0.94     0.96     1.00     1.00

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 65%
stocks, 35% 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 45%.

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

Elan