2003 MARKET FORECASTS

FINANCIAL ASTROLOGY:
It is NOT WHAT you know, but WHEN you know it.

© Henry Weingarten Last Updated:

Most of the following material has been serialized in WALL STREET, NEXT WEEK and our subscriber premium channels. Our next semiannual update will be posted after our 11th Annual  Astrology and Stock Market Seminar May 16-18, 2003 in New York City.
Note: Hyper links that are prefaced with a S: are restricted to WSNW Subscribers.                                                     

There are four primary celestial and terrestrial phenomena affecting world events and global markets in 2003:


Global Stock markets in 2003 will be determined largely by answering two questions:
Q1:  How will Bush's Iraqi crusade affect Oil prices and help or hinder the War on Terror?
Q2:  Who will be helped/hurt the most by the lower US dollar?

 HOW HIGH IS UP?

HOW LOW IS LOW?

2003 POSSIBLE TRADING RANGES
DJIA: 7240 to 10,660
NASDAQ: 1115-2135

VALUE WITH GROWTH
Capital Preservation will no longer be quite as important for global investors when investor's fear fade away. It continues to be a time for growth leadership. However, we advise caution and recommend an investment strategy paradigm of  BUY and HOLD Growth stocks with at least reasonable valuations based on current and future profits. Do not ignore pension liabilities or the expensing of options in these calculations. Moreover,  international money flows will no longer exclusively favor the US, with Asia, Europe and even emerging markets garnering more future global  interest.  However, note by the second half of 2003, value will no longer under perform as in the first half.

Classic "Buy and Hold" is passé: Stock picking , more than sector membership and even Market timing will rule in 2003. Successful investing will depend on knowing: 
When all the good news has already been factored into the share price, at what price is the valuation just too high? 
When all the bad news has already been factored into the share price, at what price is the valuation too cheap?

Any and all investing profits need to be protected against future bear assaults in 2003.  We advise against returning to past excessive speculation as investor fear recedes.
Trade more (30% of  portfolio) and take/protect profits at 15%-25% profit points for long term non core holdings.

LEARN THE LESSONS OF 2000, THEY WILL REPEAT IN 2003:
1) Buy carefully and when stock valuation becomes super frothy again, SELL.
2) Be careful about owning stocks that are “priced to perfection”, they can only disappoint.
3) It is NEVER “different this time.”
4) Ultimately, profits matter.
        

INVESTORS SHOULD BUY AND HOLD STOCKS IN 2003 THAT ARE:
1) Profitable, well managed companies,
2) H1 P/E* under 25 for Growth and under 18 for Value; H2 P/E* under 22 for Growth and under 16 for Value.       
3) A PEG <1.5 or undervalued by 10% or more.

*After allowing for pension liabilities and expensing options.


I GLOBAL INVESTING

  BUY INDIA & JAPAN
ACCUMULATE ASIA & EUROPE
         
TRADE THE UNITED STATES
                                              
                                       

The Horoscope is a MAP of TIME and PLACE - here is a brief overview of selected global markets:

EUROPE - A global alternative to the US         


NORTH AMERICA - Traders paradise


ASIA/PACIFIC
- Intermediate term investment opportunities in Japan and India
. Long term, China and Asia will be the fastest growing area in the world 2010-2030.


OTHER- Opportunities for savvy investors ONLY .

We continue to recommend caution for emerging markets unless you monitor them very closely.
Later in 2003, the global investing landscape may be dramatically different.
WSNW subscribers should periodically review our S: AFUND GLOBAL 12 - for our favorite global blue chip long term investments.


 II TIMING
Traders believe "Making money in the market is all about Timing".  The "Buy And Hold" climate we've had in the US stock    market is long PAST HISTORY.  Since 2000, it is now a  "Market Timing" and “Stock Picking” environment.  Markets reward best stocks that have Value AND Growth. Short term corporate profits disappointed on the short side due to ruthless competition for much of 2002.  Now corporate profits for well managed and sufficiently capitalized companies should rise.                                                                                               
Despite the fact that we do live in interesting times, short term we repeat last year's mantra:

VALUE plus GROWTH IS BEST and Trade for short term profit 15-25% moves.
           

SHORT TERM
The current Zeitgeist continues to highlight UNCERTAINTY. Gold therefore is likely to shine early in the year.
Stock selection is paramount and will count more than sector rotation and even stock market timing!
ADVICE: TAKE/PROTECT PROFITS VERY EARLY INTO THE YEAR. It could be a cold winter for stocks.
Given that the traditional "Buy and Hold" investing strategy will continue to underperform, we recommend trading 50% (up from 30% in 2002) in "investing" portfolios in H1 2003.

INTERMEDIATE TERM

The big cosmic paradigm is the three passes of Jupiter opposing Neptune that began in September 11, 2002 and ends June 3, 2003.  Obviously this can be good news for both the biotechs and drug industry as well as for gaming stocks. We are looking to natural gas, wind power, media and entertainment sectors to outperform. 
Jupiter went into Leo August 1, 2002, cosmically assisting the entertainment industry. We expect solar energy and fuel cells to begin to get more respect as they are targeted for mainstream America in 2004. It is an open question whether it will be American companies or foreign companies like BP, Kyocera and Sharp that benefit most.  President Bush: are you listening?
This is followed  by one pass of  Jupiter/Uranus in August of  2003, by which time electronic companies e.g. MC, SNE, Samsung and PHG will be in heaven thanks to increased home theatre sales, flat panel TVs and eventually HDTV.  Also around this time, interactive TV and Video on demand will begin to develop more widely, obviously helping AOL and MSFT among others.

Bush's Progressed Mars (War) is increasingly prominent in 2003 = an expansion on the war on terror.  At the same time, we will also see in 2003 Saturn activating the US Sun. Given that Saturn represents "reality", paying the piper is not likely to be overly favorable for US markets given the US budget deficit from a weakened economy, the War on Terrorism and Tax Cuts.
We also expect to see more high profile Bush administration official departures.

We note the Solar Eclipse of November 23, 2003 as also pivotal to certain countries economies and will be discussed in our May 2003 Market Forecast update

LEARN THE MARKET LESSONS OF 2000, BECAUSE THEY WILL REPEAT IN 2003.


LONGER TERM

2005: The fifth year of decade has been positive since 1881.  We see no reason at this moment to disagree with history.

March 29, 2006 is a Total Solar Eclipse.

December 2007: Jupiter will be conjunct Pluto.

The low point of the nodal cycle is reached in 2008. 

This will be followed by Jupiter conjunct Neptune in 2009 and the next epic shifting planetary configurations in 2010/2011 of Jupiter conjunct Uranus AND Jupiter opposition Saturn preceding the December 21, 2012 Mayan end date.


III SECTORS
Sector based investing is continuing to replace country based approaches to global investing.
Favorite post  millennium future themes are: Biotechnology, Hydrogen/Solar Energy, Robotics,Wind/Water and Nanotechnology (2004/5) .
The old themes of Technology, Communications and Health Care still matter.
WSNW subscribers: please note we update our coverage on the following industry sectors on our premium Silver posting area: S:COMMUNICATIONS, S:COMPUTERS, S: ENERGY, S: HEALTH CARE S: MINING, and  S: REITS.            

Our 2003 favorites sectors are:         

IV STOCKS
Having my Moon in Libra, my Stock Selection is both:
TOP DOWN: country/currency, bourse/sector, individual stock and
BOTTOM UP : strong astrological and/or fundamental/technical indications.

I like to begin with one or more of the following 4 criteria:

   A: CASH RICH, WELL MANAGED AND PROFITABLE,  

   B:  UNLOVED BUT UNDERVALUED, 

   C:  POSITIVE MOMENTUM AND MONEY FLOWS          

   D: GOOD HOROSCOPE OR IN AN ASTROLOGICALLY FAVORED SECTOR:   

     1) Jupiter in Leo
     2) Jupiter Opposite Neptune

Please note our past favorite trading strategy has been buying pre and post news pops due to companies slightly outperforming repeated earnings downgrades. This Winter/Spring our favorite strategy will be buying quality momentum stocks for short term positional trading..

Our first choice are cash rich global blue chips. These are companies that are prospering by gaining market share and buying "cheap" assets during this economic slowdown over small and midcaps.  These are companies that tough out the near term and become far stronger in the long term.  Our game plan is to invest conservatively, but due to recent high market  volatility and increasingly compressed market cycles, we now advise trading all accounts more actively: an average of 50% of portfolio holdings in H1 2003.  Intermediate and longer term European (and Asian) stocks may NO longer rise and fall fully in sync with US markets!  This will happen more when the US dollar is generally recognized to be in a secular decline. WSNW subscribers should periodically review our S: AFUND GLOBAL 12 - for our favorite global blue chip long term investments.
                                               
Six selected Investing  themes follow. For more and updates, WSNW subscribers may visit our AFUND premium channels.    

1.  Expect a further drop in US dollar of 2-6%, select Country I-Shares or Foreign Blue Chip companies:

2. We always prefer undervalued stocks, especially if coupled with a yield greater than the classic value buy signal of 5%, e.g. Utilities like Scottish Power (SPI), Warehouse and Apartment Reit's like Apartment Investment (AIV) and Sovran Self Storage (SSS) or the best named REIT WRI (Weingarten Reality!). We also recommend stocks that are 10% or more undervalued or potential M&A acquistion candidates. Currently our favorite out of  favor stocks are Drugs and Technology (intermediate term). Short term, we will be playing the oil and energy sectors for this investing theme.                                                     

3. S: DJIA FAVORITE 2003 stocks,  i.e. hold/buy on an intermediate-long term are Home Depot (HD), IBM and Johnson and Johnson (JNJ).  We do not expect too much performance of  Dow Stocks and Diamond Index (DIA) for Q1 2003, after early January. Once again, most Blue Chip stocks will still have to be traded, not "buy and  held" for better than 10% returns in 2003. We would look to buy on good price points/times: American Express (AXP) [more H2], Eastman Kodak (EK) remains strong H1 2003, Hewlett-Packard (HPQ) [especially H2], and United Technology (UTX).                

4.   MEDIA AND CONSUMER ELECTRONICS: PREPARE TO PROSPER
One of our two favorite sectors to buy and hold into 2003 is Consumer Electronics. Our favorite choices are: SONY [SNE], SAMSUNG, PHILLIPS [PHG] and Matsushita aka Panasonic [MC] and Best Buy (BBY).
Five Media brands to accumulate on weakness are: AOL, Disney (DIS), NY Times (NYT) Yahoo (YHOO) and Vivendi (V). All have strong potential growth and increasing advertising revenues. Two other tradable picks in this sector to watch are Clear Channel Communications (CCU) and FOX.

5. FUTURE TECHNOLOGIES
Even before we became one of the first Apple dealers in NYC, we historically have liked betting on emerging technologies.   This we recommend doing in a basket of stocks, but not paying too much of a premium over value for longer term holding. 
Our current favorites sectors are:                            

APPLIED  ROBOTICS: e.g. Int. Hi-Tech Industries (IHITF)*  and ?   
BIOTECHNOLOGY: e.g. BBH, IBB, Amgen (AMGN) and Enzo Biochem (ENZ).           
SUCCESSOR ENERGY: e.g. Astropower (APWR) and Vestas.
NANOTECHNOLOGY: ?  

*6. AFUND CLIENTS
Business Astrologers know that the best way to predict the future is to create it.
With strong Disclaimers and with an informed but obviously biased view, I am  doing my best to help create investor wealth for client companies we now consult for including International High Tech Industries [IHITF] , Mountain Province Mining (MPVI) and all Globestar Capital companies beginning with Screenphone Corp in 2003.    


Since May 2, 1988 I have established a superior forecasting record primarily due to my knowledge of financial astrology. While not perfect as some critics would demand, my precision and accuracy is appreciated by many professional traders and investors.  As more of our forecasting is now private and contracted to money managers and institutional investors, it is my intention to have other financial astrologers and money managers contribute more on my web site in the future.
Latest sample performance figures at AFUND Performance.
Henry Weingarten

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