*                         5/15     5/22     5/29     6/5/23
S&P 500 Index             4124.08  4191.98  4205.45  4282.37
Trailing 12 month PE      23.03    23.35    23.46    23.92
Trail Earnings yield      4.34%    4.28%    4.26%    4.18%
Forward 12 month PE       19.66    19.93    20.07    20.30
Fwd Earnings Yield        5.09%    5.02%    4.98%    4.93%
90 day tbill yield        5.25     5.29     5.34     5.50
10 year tbond yield       3.46%    3.70%    3.80%    3.69%
Arezi Ratio               1.21     1.23     1.25     1.32
Fed Ratio                 0.68     0.74     0.76     0.75

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 54%
stocks, 46% 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 inverted. - Bearish

A composite allocation may start with the Arezi formula and subtract 10%
for each bearish indicator. The current target allocation is 24%.

An alternative allocation, using S=120-30*Arezi Ratio and the first
two of the other timing indicators, produces a target of 71%.

Elan

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