*                         2/16     2/23     3/2      3/9/26
S&P 500 Index             6836.17  6909.51  6878.88  6740.02
Trailing 12 month PE      27.11    27.30    27.07    26.44   
Trail Earnings yield      3.69%    3.66%    3.69%    3.78%
Forward 12 month PE       22.95    23.14    22.97    22.46
Fwd Earnings Yield        4.36%    4.32%    4.35%    4.45%
90 day tbill yield        3.68     3.69     3.67     3.69
10 year tbond yield       4.04%    4.08%    3.97%    4.15%
Arezi Ratio               1.00     1.01     0.99     0.98
Fed Ratio                 0.93     0.94     0.91     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 71%
stocks, 29% 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 61%.

An alternative allocation, using S=120-30*Arezi Ratio and the first
two of the other timing indicators, produces a target of 91%.

Elan

Berkshire Hathaway FAQ

---

Contact Shrewd'm
Contact the developer of these message boards.