© Henry Weingarten Last Updated:

Much of the following material has been serialized in our newsletter WALL STREET, NEXT WEEK and our premium channels.  It was updated publicly at our 9th Annual Astrology and Stock Market Seminar May 17, 2001 in NewYork City.    Note: Hyper links that are prefaced with a S:, G: or P: are restricted to WSNW  Subscribers.       

There are 5 primary celestial and terrestial phenomena affecting world events and global markets in 2001/2:

• The Solar Eclipse on the Summer Solstice June 21, 2001.
• Three Saturn Pluto oppositions: August 5 to May 26, 2002.
  
• E-DAY:  January 1, 2002 Euro Currency Launch
• November 30, 2001, May 31, 2002, MSCI index changes
• New Stock Exchanges (new Bourse horoscopes) such as International Nasdaq and LSE alliance  mergers.

Three Big Investing Ideas
                                                                                                                                         

1. MORE REALISTIC STOCK VALUATION (Jupiter/Saturn). This trend continues from 2000.

•  Intermediate term best performance will be value stocks (Saturn) that also are growing (Jupiter).
• Lower P/E valuations, but still much higher than historic norms.


2. DOLLAR  DECLINE ACCELERATING IN 2001/2
The secular US$ rally is ending, having topped with three peaks, one in May 2000, one 6 months later and finally (?) one now a year later . If  you liked $10 Oil, then you will love the  Euro .85-88!  We expect to see 93-1.05 over 18 months        

3. SATURN/PLUTO 2001/2002
Economic slowdown and fears of recession well  founded. These aspects plus new FASB rules forecast more failed  mergers and corporate break ups. Politically, expect even  more anti-globalization protests.
The battle coming over Energy Conservation (Saturn) vs. Pluto (drilling, nuclear energy)
Eliminating environment protection  VS  price caps  VS  conservation and efficiency (Our choice).

The two positives for the markets are the longer term effects of  lower US interest rates (Don't Fight the Fed) and increasing the  limit of  tax sheltered funds into the market. There is also the tendency of markets to "climb the wall of worry" and we expect plenty of this (worry) coming up.

Capital Preservation will continue to be  important  for global investors in 2001 and into early 2002.  The new  investment strategy paradigm of BUY, HOLD and SELL demands more frequent portfolio reviews, diversification and more frequent trading.  International money flows will no longer exclusively favor the US with Asia and Europe garnering global   interest.    

VALUE WITH GROWTH
Just as stocks with 200 P/E are taboo now, so too will the 100 P/E stocks be next year.

Last year's advice seems so distant and written for another time, another market cycle.  We don't expect a return to the "good ole days", but several compressed market cycles,  both up and  down with increasing sector rotation.
Our advice: Trade more (25% of  portfolio) and take or protect profits at 15%, 20% and 25% profit points for non-core long  term holdings.      

INVESTORS SHOULD BUY AND HOLD STOCKS INTO 2002  THAT ARE:
1) Profitable,
2) P/E under 25 TMT (Technology, Media, Telecommunications); 20 for others,
3) Less than 10% over Morningstar Value.

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

EUROPE - Relative strength in North Euroland & Euro strengthening into 2002         

• GERMANY -  Blue Chips [EWG] outperform as German behemoths domestically split up and merge/acquire globally. [Pluto/Uranus in 2001 followed by Jupiter in 2002.]
• HOLLAND - Continues to be one of three favorite countries in 2001 with Euro rally help. However, we may suggest some selling into strength as better global opportunities arise.
• ENGLAND - Summer eclipse may be positive for England and Ireland. Our view of the city changes for the better in 2002 and perhaps sooner depending on future LSE horoscope alliance. Export companies will obviously benefit from the cheaper pound, while those dependent on imports will suffer.
• AUSTRIA [EWO] - now a hold/protect and market perform (from outperform).
• EU EXPANSION countries, the Czech Republic, Poland, Hungary, Cyprus, Slovenia and Estonia have been upgraded to Watch.
                                    

NORTH AMERICA - Traders paradise

• S: CANADA - Invest here for increasing prosperity in  2001-2002!  The Canadian Dollar is a great bargain and will  outperform the US Dollar  in 2002.
• MEXICO -  While certain international stocks e.g. CX have performed  well and continue to benefit from NAFTA, we prefer to wait until closer to the end of the US economic slowdown in 2002. Unless a stock is likely to be a takeover target like Banacci was by Citibank, YANQUIS STAY HOME! 
• UNITED STATES - Still overvalued versus global counterparts. Select cash rich dominant blue chips e.g. IBM, C         will outpeform,  but many former investor favorites will disappoint. US  Bonds will be less attractive as the year goes on. The US Dollar  remains a ticking time bomb before January 2002: It is no longer as safe a haven with new competition    forthcoming from the EURO  in 2001 and  perhaps even gold. However, since one can trade stocks here for 10-25% appreciation/depreciation a  day/week,  this remains TRADERS HEAVEN.

 

• JAPAN - We were delighted when our five year wait for Japan to break  12,222. The Nikkei is now a long term buy to 16,000, especially when the Yen  is weaker than 122 [Fair value =115-118]. Naturally,  we prefer exporters that will benefit from cheap Yen e.g. Sony  (SNE),  Matsushita  (MC),  Honda (HMC) and Kyocera (KYO).  JAPAN INC  may become one of our favorite 2002 countries. Watch the effect of the Summer solstice here on JAPAN INC.
• HONG KONG/CHINA -  Political problems/potential violence in 2001!  Add to this, the fact that many of the mainland's industries are a mess and China's horoscopes are "challenged", therefore we continue to recommend     AVOID. Like other Asian economies, Hong Kong has been  buoyed by surging US exports.  As consumer spending  slows down,  it will have a very negative effect there.  Despite a  good economy,  we would reduce exposure to Taiwanese markets unless fully compensated for the extra risk.  Further, Hong Kong, along with Singapore and    Malaysia will loseout from MSCI changes as most of the top 20 companies in these countries have less than 50% float.  Conversely, Taiwan  may benefit but  not enough to compensate for potential "war like" conditions.
• KOREA- Buy select, non-bankrupt :), companies such as Samsung Electronics (SSNGF). A MAJOR peace dividend   is expected in late 2001/2002.
• INDIA- The most money is still to be made by insiders as recent corruption scandals attest. Furthermore, there are potential "issues" with Pakistan this summer that advise caution.  Buy computer, Telecom and pharmecuticals bargains only if/when you find them.
• AUSTRALIA - We are mildly bullish for 2002/3 e.g. BHP due to [future] appreciating Aussie dollar.
• NEW ZELAND- The Good news is mostly built in.  Slowly distribute NZ 40 2200 OB if you are there in size.
  

OTHER- Opportunities for savvy investors ONLY .

• ISRAEL - Israel's technology sector will continue to outperform given its highly skilled labor force and favorable tax treatment. However, it largely remains overvalued and bargains are still hard to come by. Unfortunately,  it is best to buy only when there is blood in the streets, which is all too often these days.
• RUSSIA - If/when there is a rule of law, many attractive high risk/high reward opportunities MAY present themselves next year.
• BRAZIL - With crisis, comes opportunity, especially for quality exporters thanks to the cheap Reais currency. Accumulate on weakness only for appropriate multi-year long term investment portfolios.
  

As long as it remains an open question whether a  "soft" landing can be engineered  or whether a "hard" crash is inevitable          sooner or  later,  we continue to recommend avoiding most emerging markets in 2001. 
In 2002, the global investing landscape  may be dramatically different.
See our 2002 Stock Market forecasts to be issued this Fall.   

Despite the fact that we do live in interesting times, intermediate term we repeat last year's mantra:
BORING IS GOOD and VALUE plus GROWTH IS BEST and now add Trade for short term profit 15-25% moves.
Old-line technology companies such as  Boeing (BA)  IBM,  Rockwell (ROK), Hitachi  (HIT) and United Technologies     (UTX) will be continue to be safe heavens and generally outperform.                
Traditional safe heavens such as Real Estate [REITS] and select Utilities remain good investments, but the latter will give more sleepless nights.

• Last year we asked "How many pieces can ATT, BT etc. split   themselves into?"  Top prize was awarded to Candian Pacific (CP) which plans a five-way split. Kudos to their astrological advisor.
• While bankruptcy attorney's will be in clover, look to accumulate temporary  employment service firms like Manpower (MAN) or Robert Half (RHI)  that will benefit from upcoming tough ecnomic conditons.
  
• Continued increased opposition to merger mania and globalization ala World Bank and IMF wishes.
• Blocking of nuclear power and the argument of conservation and efficiency vs price controls and the waving of environmental rules. Ironically, OPEC is likely to withhold more supply due to Oil "glut" from  reduced  demand.
• We foresee see between -2% and -5% economic decline (total) over 1Qtr 2001 benchmark. We WILL have a continuing economic slowdown this Summer. This is likely to be a soft landing with small risk of extended recession     (hard landing).  If there is an official recession its beginning is timed by this.
• Watch security and defense to move to center stage. Consider yourself warned and act appropriately.

The next key total eclipse of the Sun will take place on June 21, 2001. By and large we believe this will be good  for some    global  stock markets, e.g.  England/Ireland and especially  Japan. It potentially provides the Japanese PM enough cosmic    power to finally eclipse the past  financial blockages and move  Japan into the 21st century.  However,  Mercury/Mars      unfortunately  raises the possbility of  increasing  violence and terrorism threats - Watch       

INTERMEDIATE TERM

LONGER TERM

Jupiter will oppose Neptune beginning September 11, 2002 and ending  June 3, 2003.  Obviously good news for both the drug industry as well as gaming industries.  Also look to travel (cruises), natural gas, wind power, leisure and entertainment sectors to outperform.  This is followed by one pass of  Jupiter/Uranus in August of 2003 by which electronic companies e.g. SNE and  PHG will be in heaven thanks   to mass  HDTV. Also at this time, interactive TV and Video on demand will become widespread obviously help AOL and MSFT, but others as well (tba). However, we will also see in 2003 Saturn activating the US Sun.

December 2007  Jupiter will be conjunct  Pluto. The  low  point of the nodal cycle is reached 2008.  This will be followed by Jupiter conjunct Neptune  in 2009 and Jupiter conjunct Uranus  in 2010.

                                                                     
• Consumer Non-Cyclicals
  
• Defense/Safety*
• Education
• Exploration and Successor Energy
  
• Housing & Construction
  
• Leisure & Travel (2002)
• Food and Beverage
• Media (2002)
• REITS
• Staffing                 

• * A clear money manager favorite, but our SRI leanings do not incline  us to buy this sector for clients. This Saturn/Pluto theme may also be played with  stocks ranging from Checkpoint (CKP) retail anti-theft  to Internet security RSA  Security (RSAS) and Checkpoint Software (CHKP) to LoJak (LOJN).  Non-SRI managers can accumulate BF Goodrich, (GR) Rockwell (ROK) or Boeing (BA).
• Robotic favorites are FANUC,  IHITF,  ROBV.             
• Jupiter entering Cancer in July 2000 will continue to help "boring" consumer noncyclical   (IYK) as food companies such as Ahold (AHO),  Brinker International (EAT), Dole (DOL), Hain (HAIN), Hansen (HANS),  Heinz  (HNZ) and Whole Foods Market (WFMI). Other potential Cancer themes include  home builders Pulte (PHM) and Centex (CTX), or Home Depot  (HD) and Lowe (LOW), Extended Stay (ESA), Felcor (FCH) and ocean hospitality such as Royal Carribean (RCL) and Club Med (CLMDY) as well as packaging companies like Earthshell (Erth) and Kyocera (KYO).
• Select Diversified Energy companies such as BP and Norsk Hydro (NHY). Danish windmill manufacturers, Vestas Wind Energy Systems (VWSYF) and NEG   Micon (NEGMF) especially in 2003 and solar Astropower (APWR) will offer more  than 30% growth annually.   We are also looking for opportunities  to trading buy older energy technology     companies on big  dips such as Sun, VLO, Parker Drilling (PKD),  Gulf (GOU),  Sucor  (SU), BP and RD.
Energy efficiency along with the cheap Yen will keep Honda  (HMC) and Toyota strong global leaders with strong profits.                                                                                                                                                                          
• We still like SSS and WRI Reits as core long term holds in conservative portfolios.
• The number three beverage and fastest growing is Water.  Big Euro food groups Dannone [DA] and Nestle [NSRGY] own the largest brands and  remain conservatively profitable. However niche players like Vermont Pure (VPS) are also worth watching and drinking.
  

I like to begin with one or more of the following 3 criteria:
  

     1) Jupiter in Cancer
     2) Saturn/Pluto opposition
     3) Jupiter Opposite Neptune (2002/3)

Please note we are no longer relying the fallen angels strategy- they have already fallen!  It has been replaced by our new favorite strategy:

BUYING FOR THE LONG TERM (May 2002 on) a 2/3 or 3/3 mixture of
1)  BUYING CASH RICH LEADERS  
2) UNDERVALUED
3) ASTROLOGICALLY FAVORED STOCKS AND SECTORS

1.  Give expected drop in US dollar of 3-7%, select Country I-Shares or Webs) or Foreign Blue Chips companies:

• Netherlands (EWN) : Euro strength Unilever (UL), Philips (PHG), Royal Dutch (RD) and Ahold (AHO)
• Germany (EWG) : Euro strength -, Deutsche Bank (DTBKY) and Bertelsmann  (BTGGga.DE).
• Japan (EWJ): Yen weakness -  Kyocera (KYO), Matsushita (MC), Sony (SNE) and Honda (HMC)
• CANADA (EWJ): $CD strength - CIBC (BCM), Sucor (SU) and Sun Life (SLC).
• United Kingdom : BP Amoco (BP), Pearson (PRSNY) and Elan (ELN). 
  

3. S: DJIA FAVORITE 2001 stock, i.e.hold/buy on an intermediate-long term on a relative basis remains IBM. We expect     continued modest consolidation and performance of  Dow Stocks and Diamond  Index (DIA).  Most Blue Chips stocks have  to be traded,  not "buy and held" for better than single digit  returns in 2001.  Two exceptions are: Citigroup (C) and United Technologies   (UTX). On weakness, we may also buy Microsoft along with Boeing (BA),  Home Depot (HD) and General  Electric (GE) if markets correct downward dramatically once again.          

• (1) The three most undervalued DJIA stock are MO (worth $80),  UTX (worth $97) and C (worth $66).
• (2) C is both undervalued and like IBM cash rich. It is well positioned  to take advantage of coming bad times and is finally beginning to achieve synergy benefits of  its past merger.  JPM is an "avoid", while AXP accumulate on weakness.
  
• (3) Microsoft (MSFT) while a cash machine is both over valued and poorly managed. Negatives include lingering government suits and likely additional product delays.  Still, astrologically it  is a strong buy by Fall 2001.
• (4) Most likely replacement for Honeywell is Cisco. ALL future bad news built in; any surprise MUST be therefore       be positive. AOL is the other popular DJIA replacement choice but is uninspired. Emotionally, we prefer to sell it on strength rather than  buy it on dips intermediate term.
• (5) Macdonalds, like Home Depot, will benefit from Jupiter in Cancer. MCD is worth buying under 27 for a 12-18 month price target of 36.5 if you can stomach it. Competitor Wendy's offers better fast food (according to their spokeperson Dave) and better stock value at similiar stock pricing.  Likewise, Lowe's (LOW) has been a far better  buy  than Home Depot.

S: APPLIED  ROBOTICS: e.g. Int. Hi-Tech Industries (IHITF)* , Robotic Vision (ROBV) and FANUC.  
BIOTECHNOLOGY: e.g  Celsion (CLN) and StemCells (STEM).      
SUCCESSOR ENERGY: e.g. Astropower (APWR) Nuvera (IPO: NVRA) and Evergreen Solar (ESLR).   

*5. AFUND CLIENTS
Business Astrologers know that the best way to predict the future is to create it.
With strong Disclaimers and with an obviously biased view,  I am doing my  best to help create investor wealth for client companies we now consult  for e.g. International  High Tech Industries [IHITF] and Cancall Communications (Screenphone).