*                         4/20     4/27     5/4      5/11/26
S&P 500 Index             7122.81  7165.08  7230.12  7398.93
Trailing 12 month PE      30.24    30.54    30.99    31.56
Trail Earnings yield      3.31%    3.27%    3.23%    3.17%
Forward 12 month PE       20.68    20.68    20.87    20.86
Fwd Earnings Yield        4.84%    4.84%    4.79%    4.79%
90 day tbill yield        3.70     3.69     3.68     3.69
10 year tbond yield       4.26%    4.31%    4.39%    4.38%
Arezi Ratio               1.12     1.13     1.14     1.16
Fed Ratio                 0.88     0.89     0.92     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 62%
stocks, 38% 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 52%.

An alternative allocation, using S=120-30*Arezi Ratio and the first
two of the other timing indicators, produces a target of 85%.

Elan

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