*                         3/16     3/23     3/30     4/6/26
S&P 500 Index             6632.19  6506.48  6368.85  6582.69
Trailing 12 month PE      25.93    25.33    24.72    28.21
Trail Earnings yield      3.86%    3.95%    4.05%    3.54
Forward 12 month PE       22.04    21.55    21.04    21.19
Fwd Earnings Yield        4.54%    4.64%    4.75%    4.72%
90 day tbill yield        3.72     3.74     3.73     3.71
10 year tbond yield       4.28%    4.39%    4.44%    4.35%
Arezi Ratio               0.96     0.95     0.92     1.05
Fed Ratio                 0.94     0.95     0.93     0.92

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 below its 200DMA. - Bearish
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 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

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