*                         7/6      7/13     7/20     7/27/26
S&P 500 Index             7483.24  7575.39  7457.69  7411.98
Trailing 12 month PE      32.15    32.45    32.41    28.49
Trail Earnings yield      3.11%    3.08%    3.09%    3.51%
Forward 12 month PE       20.18    21.37    20.88    19.77
Fwd Earnings Yield        4.96%    4.68%    4.79%    5.06%
90 day tbill yield        3.82     3.85     3.85     3.96
10 year tbond yield       4.49%    4.56%    4.55%    4.69%
Arezi Ratio               1.23     1.25     1.25     1.13
Fed Ratio                 0.91     0.97     0.95     0.93

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 64%
stocks, 36% 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 44%.

An alternative allocation, using S=120-30*Arezi Ratio and the first
two of the other timing indicators, produces a target of 76%.

Elan