*                         8/31     9/7      9/14     9/21/26
S&P 500 Index             7711.76  7718.60  7656.98  7650.50
Trailing 12 month PE      29.79    26.36    25.93    26.10
Trail Earnings yield      3.36%    3.79%    3.86%    3.83%
Forward 12 month PE       20.25    20.23    19.05    19.10
Fwd Earnings Yield        4.94%    4.94%    5.25%    5.24%
90 day tbill yield        3.90     3.91     4.07     4.14
10 year tbond yield       4.73%    4.78%    4.96%    5.01%
Arezi Ratio               1.16     1.03     1.05     1.08
Fed Ratio                 0.96     0.97     0.94     0.96

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 66%
stocks, 34% 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 46%.

An alternative allocation, using S=120-30*Arezi Ratio and the first
two of the other timing indicators, produces a target of 78%.

Elan