*                         10/13    10/20    10/27    11/3/25
S&P 500 Index             6552.51  6664.01  6791.69  6840.20
Trailing 12 month PE      28.14    28.59    29.07    29.22
Trail Earnings yield      3.55%    3.50%    3.44%    3.42%
Forward 12 month PE       24.24    24.54    24.92    25.02
Fwd Earnings Yield        4.13%    4.08%    4.01%    4.00%
90 day tbill yield        4.02     4.00     3.93     3.89
10 year tbond yield       4.05%    4.02%    4.02%    4.11%
Arezi Ratio               1.13     1.14     1.14     1.14
Fed Ratio                 0.98     0.99     1.00     1.03

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 63%
stocks, 37% 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 53%.

An alternative allocation, using S=120-30*Arezi Ratio and the first
two of the other timing indicators, produces a target of 86%.

Elan

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