*                         6/19     6/26     7/3      7/10/23
S&P 500 Index             4409.59  4348.33  4450.38  4398.95
Trailing 12 month PE      24.58    24.20    24.72    24.39
Trail Earnings yield      4.07%    4.13%    4.05%    4.10%
Forward 12 month PE       20.88    20.60    21.03    20.87
Fwd Earnings Yield        4.79%    4.85%    4.76%    4.79%
90 day tbill yield        5.34     5.41     5.43     5.46
10 year tbond yield       3.77%    3.74%    3.81%    4.06%
Arezi Ratio               1.31     1.31     1.34     1.33
Fed Ratio                 0.79     0.77     0.80     0.85

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 53%
stocks, 47% 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 23%.

An alternative allocation, using S=120-30*Arezi Ratio and the first
two of the other timing indicators, produces a target of 70%.

Elan

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