*                         8/17     8/24     8/31     9/7/26
S&P 500 Index             7785.76  7674.37  7711.76  7718.60
Trailing 12 month PE      30.06    29.46    29.79    26.36
Trail Earnings yield      3.33%    3.39%    3.36%    3.79%
Forward 12 month PE       20.60    20.28    20.25    20.23
Fwd Earnings Yield        4.85%    4.93%    4.94%    4.94%
90 day tbill yield        3.86     3.88     3.90     3.91
10 year tbond yield       4.68%    4.74%    4.73%    4.78%
Arezi Ratio               1.16     1.14     1.16     1.03
Fed Ratio                 0.96     0.96     0.96     0.97

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 68%
stocks, 32% 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 48%.

An alternative allocation, using S=120-30*Arezi Ratio and the first
two of the other timing indicators, produces a target of 79%.

Elan