It has been past practice to begin with a review of our 1997 forecasts. As this is being down on a monthly basis on our web site, there is no need to comment beyond that our March 11 call for a top in the DIJA was both perfect, but alas shortlived....
MARKET TIMING - THE BIG PICTURE
TO:
Over the next 3 years, we believe real assets ( tangible goods) will outperform financial assets (stocks). While there will be exceptions overall, $100,000 invested in Real Estate today will be worth more than $100,000 invested in the stock market.
When buying stocks for the long term, look to companies that are building businesses, i.e. are in harmony with the upcoming Jupiter/Saturn conjunction in May 2000.
Year end we expect the market to return at best single digits and quite likely minus. REVENGE OF THE MONEY MANAGERS AGAINST INDEXING.
Our forecast for the remainder of 1997 is:
JULY DOWN/ SEPTEMBER TO FEBRUARY DOWN (XMAS rally).
STOCK SELECTION
Begin with one or more of the following 3 criteria:
1. UNDER 52 WEEK LOW
2. 5% YIELD
3. GOOD HOROSCOPE OR STOCK IN UPCOMING COSMIC SECTOR
THEMES
EXAMPLES - TELECOMS
ATT (T) is an example of 1.
Frontier (FRO) is an example of 2 (as well as a potential takeover candidate).
Lucent (LU) is an an example of 3 (would buy on a 30% correction).
THIS SUMMER
I recommend buying bonds to maximum allocation. Time frame is late June to August and/or a Yield of 7.35%. However we recommend shorting at current levels (~110) until then.
1998
I like Novell which I have recommended before at higher levels. Expect a minimum of 50% appreciation with a P2 target of 100%. I like the fundamentals and it has a VERY good horoscope in 1998. Also surprisingly, I like Disney’s horoscope in 1998, so I would buy in December or 45, whichever comes first.
Mid-1998 to 1999
Italy and GM strongly outperform in this time period.
COMPUTERS
STRONG BUY: NOVL
BUY/HOLD CPQ/SUNW
SELL WINTEL: MSFT & INTEL
NOTE: If you are a market bull you can buy CPQ, SUNW. If a bear, hold them. We continue to believe the 288 ½ Wintel high is a long term top.
DIJA
BUY: MO Rebuy at 35 or after end of this month if a bull.
SELL: DIS June/July we expect more Mickey Mouse stories.
IBM:
Over priced, but a good horoscope this next year.GE: Fair
KO: Neutral
INSURANCE/BANKS/BROKERAGES:
Intermediate term bearish, e.g. shorting MER at 100 OB. However as these are popular sectors, best near 52 week highs, or after short term trend established e.g. this Fall.
Alternately, BUY ING/SELL MER.
Note: longer term, the European banks have experience in merging these three industries and should do well. ING ADR should be listed this summer, will check the electional chart.
ENERGY:
NHY Norsk HYDRO
Enron: ENE
INTERNATIONALLY
Japan 1997 buy status ending.
21,000 almost reached, 23,000 is possible and P1 Yen target of 110 almost here as well. SONY ( SNE) hold and if a market bull, BUY.
Suggest selling of TOYOY (61 ¾ OB) and HMC (64 OB) this month.
New buy: Amway Japan (AJL)
RECOMMENDED COUNTRY FUNDS
ITALY FUND [ITA],
FIRST AUSTRALIA FUND [IAF],
CHILE FUND [CF] [I prefer over Brazil and Mexico]
UNFAVORABLE-UNACCEPTABLE RISK/REWARD
HONG KONG:
July 1 independence chart has a strong Mars suggesting , mostly likely NOT a smooth transition. Hang Seng 12,000 or less certainly possible.
Note: P1 Sell Issued 5/30 for 14,990.
CANADA
AVOID MID/ LATE 98/99. Its horoscope has a large probability of country wide political/economic crisis such as the Quebec independence referendum passing.
GOLD We continue to recommend some buying of Gold and Gold stocks in the 340-360 range for market disaster insurance. While there will be steady central bank selling to keep gold until $400, this is also a good dollar hedge or short. Longer term consider BASE metals as well e.g. Copper and PD (Phelps Dodge), aluminum and AA (Alcoa) etc.
Note: Buy issued 5/20
Forthcoming December 7, 1997: Our 1998 forecast and building your YEAR 2000 PORTFOLIO
(c) 1997 The Astrologers Fund. No part of this report may be reproduced or distributed in any form or by any means, except for brief passages quoted for review without the prior written permission of the publisher.
* The information above is provided by the source indicated and presented by the Astrologers Fund Inc. Neither the Astrologers Fund nor the source guarantee that the information supplied is accurate, complete or timely, or make any warranties with regard to the results obtained from its use. The Astrologers Fund does not guarantee the suitability or potential value of any particular investment or information source.
ALWAYS CHECK WITH YOUR LICENSED FINANCIAL PLANNER OR BROKER BEFORE BUYING OR SELLING ON THE RECOMMENDATIONS OF THE ASTROLOGERS FUND.
DISCLAIMER: PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE FORECASTING ACCURACY OR PROFITABLE TRADING RESULTS. The Astrologers Fund Accepts No Liability Whatsoever For Any Loss Arising From Any Use Of Its Report Or It's Contents. The Astrologers Fund Or Its Clients Usually Holds Positions In The Stocks and/or Market Instruments Mentioned And May Buy Or Sell At Any Time Without Notice. This Information Is In No Way A Representation To Buy Or Sell Securities, Bonds, Options Or Futures.
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