*                         10/19    10/26    11/2     11/9/26
S&P 500 Index             7659.44  7623.68  7580.07  7376.86
Trailing 12 month PE      26.42    26.15    25.86    25.06
Trail Earnings yield      3.79%    3.82%    3.87%    3.99%
Forward 12 month PE       18.94    18.65    18.29    17.75
Fwd Earnings Yield        5.28%    5.36%    5.47%    5.63%
90 day tbill yield        4.26     4.22     4.16     4.19
10 year tbond yield       5.09%    5.00%    4.94%    4.86%
Arezi Ratio               1.12     1.10     1.08     1.05
Fed Ratio                 0.96     0.93     0.90     0.86

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 67%
stocks, 33% 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 normal. - Bullish

A composite allocation may start with the Arezi formula and subtract 10%
for each bearish indicator. The current target allocation is 57%.

An alternative allocation, using S=120-30*Arezi Ratio and the first
two of the other timing indicators, produces a target of 88%.

Elan