WSNW SUBSCRIBERS may access our current 2001 Market forecasts.
Non-subscribers note this will be posted on January 1, 2001 here.
 

Some of the following material has been serialized in our newsletter WALL STREET, NEXT WEEK and our premium channels.  It was presented publicly at our Annual Astrology and Stock Market Seminar May 18, 2000 in New York City.
Note: While most links below are free to the public, some are restricted to WSNW Subscribers.

There are 4 primary phenomena affecting world events and global markets in 2000/1:

• Two total Eclipses: July 16, 2000 [Lunar] & the Solar Eclipse June 21, 2001
• The Jupiter/Saturn Conjunction, May 28
• US Presidential Election, November 7
• New Stock Exchanges Alliances (new Bourse horoscopes):

EURONEXT Exchange (Holland, Belgium, France),
Nasdaq Japan, Nasdaq Europe, Nasdaq Canada and
iX London Stock Exchange, Deutsche Bourse tie up.

Three BIG TRENDS:

1. MORE REALISTIC STOCK VALUATION (Jupiter/Saturn)

• Short term out performance of value stocks/funds vs growth stock/funds. Believe it or not, financial reporters will actually use words like "value", "dividends" and "profits" again!
• Lower P/E valuations, but higher than historic norms which are slightly above DJIA 6000 and 2000 for Nasdaq.


Get used to DOUBLES instead of TRIPLES - After May, many tech stocks will be given far more conservative targets, i.e. a potential high flying stock in the mid 20's may have a 12 month price target of only 45-55 instead of 75....

Recently, investors would rather play the lottery than get a job. They were more than willing to bid higher companies that have no earnings and cash flow, while many companies with real earnings, real businesses and real assets were ignored. This picture is changing due to the Jupiter/Saturn conjunction as well as the stellium in Taurus this month. Earnings and real business prospects will begin to matter. Hence stock forecasting will become easier and somewhat more rational.

However, if you want to become a millionaire, more people will choose game shows and gambling instead of the stock market route. Seizing this opportunity, we offer kudos to Howard Lutnick, Cantor Fitzerald's CEO, for setting up a new service for gamblers to be able to bid on stock prices without actually buying or selling stocks or options!  As the biggest dealer in US treasuries will be initially operating only as a London bookie, we don't expect it to reduce  exchange volumes just quite yet.

2. DOLLAR DECLINE ACCELERATING IN 2001 [Euro/Gold up]
    If you liked $10 Oil, then you will love the Euro .88-92.
    [Note: The next day May 19 was the US$ high and low of the Euro!]

3. JUPITER/PLUTO and SATURN/PLUTO
These aspects plus new FASB rules forecast more failed mergers and corporate break ups.

What comes after the FOMC meeting?  We are using the May 5th closing numbers, e.g. Nasdaq 3816, as an interim market trading top for almost all positional shorts.  How long will it hold?   Will 10800 and 4000 be reached by the Summer? Both numbers make momentum trading on the DOWNSIDE a lot easier and safer.

Except for a few weeks, the remainder of 2000 after May is not "that bad" astrologically.  Years ago, I was asked when the stock market would DEFINITELY correct.  My answer was: the insanity "HAD TO END between the July 1999 Eclipse and the May 2000 Jupiter/Saturn conjunction."  While it has, the question remains, will it go back up?  Yes, but it will also go back down.

Fundamentally, many companies [stocks] may do poorly in the first half of 2001. Profits will be challenged by increasing ECI- wage inflation, more Internet usage (B2C, B2B), although that depends on where you are on the supply chain: the Internet will also lower some costs. As we repeatedly have warned, Inflation is NOT dead. Asset (stocks and real estate) inflation is a serious threat beginning to spill over into products and services,  the Internet and NASDAQ globalization notwithstanding. We see that selective pricing power is returning. Just recently, the price of breakfast at one local Deli for eggs, toast and coffee was increased to $1.69 from $1.19! Moreover, NY housing prices reached a world record of $3000 a square foot for the new 515 Park Avenue condos being built by Zeckendorf.  While Donald Trump brags he can get $4500 sq. foot,  I say NOT THIS YEAR, as we are astrologically forecasting declining real estate prices into December-January.

Is Alan Greenspan good for more US interest rates hikes this year? If not, in 2001, it may become necessary to defend the US dollar and that will NOT be cause for a sustainable market rally.   We believe by the summer of 2001, the direction of interest rates will be reversing. While we were precise in forecasting a bottom of 4.90 and then a top 6.50, we have yet to see our P2 top of 6.80. (Yields only reached 6.75%, therefore we remain technically bearish on US Bonds short term). While it is possible .50 basis is all that is needed, the Fed by not acting more vigorously in January and February, may, we believe, force it to act again, even in an election year.

Fundamentally, for the stock market in 2000 to rise substantially above 1999 highs or to even close positive on the year, may require the future permission of some social security funds into the  market.  However, this is a Catch 22 situation, as longer term this would negatively affect bonds and interest rates.  But political leaders, like CEO's, for the most part, look to the next quarter, rarely to the next generation.

Will money flows and investor greed, stupidity and insanity continue to keep the market enough above 10,000 and Nasdaq above 3000 to prevent a panic flight to reality?  Capital Preservation remains our number one priority for global investors in 2000. Still, this is an election year and we are beginning to lower cash allocation from record levels next week.  Whether the market reaches 12,000 or closes this year under 10,000, 2001 investing demands extensive portfolio evaluation, diversification and insurance.

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 - Selective Blue Chips outperform as German behemoths domestically split up but merge/acquire globally: Pluto-Uranus in 2001 followed by Jupiter in 2002. The London tie up, good for banks and more disinvestures, creates opportunities for the M/A boys.
• HOLLAND - Strongly our "Number one favorite country" in 2000/1.  The strongest positive influences and the Euro turn (rally) will make this the star performer we have long been talking about.
• ENGLAND - We find better value elsewhere, with the obvious exception of a few select stocks, e.g. Anglo American (AAUK) and HSBC (HBC).  Our rule of thumb is that we must find at least a 10% premium to domestic stocks, e.g. PEARSON (PRSNY) while a good media company is no better than the NY Times (NYT).  However, depending on the new iX horoscope, our view of the city may well change for the better towards 2002.

NORTH AMERICA - Traders paradise

• CANADA - Invest here for increasing prosperity in 2000-2002! Will continue to outperform US markets.
• MEXICO -  Avoid, as upcoming Mexican elections historically present unacceptable risk/reward.
• UNITED STATES - Seriously Overvalued. US Currency a ticking bomb between just after the US Presidential election and before January 2002. After this Summer, "Buyer Beware" as the US dollar is no longer as safe a haven with new competition forthcoming from the ECU in 2001 and perhaps even GOLD.  However, since one can trade stocks here for 10-25% appreciation/depreciation a day/week, this is TRADERS HEAVEN.  However, US Bonds (Foreign investors may wish to hedge the US currency) will begin to perform well by the Summer and still even stronger this Fall (October).

ASIA/PACIFIC - Long term investment opportunities

• JAPAN - The markets proved us wrong on this one last year.  We find the economy worse than most believe and we are too late for the Yen appreciation we expected for 2000.  The big plus is the HUGE Japanese savings rates some of which is being pushed into the stock market. We may buy on dips if the REAL economic situation improves later this year.  We like some exporters [Hitachi:HIT,  Matsushita:MC] when the Yen value is weaker than 115. Japan still has protective astrological influences on the TSE chart. We still see 12,222 as a possible Nikkei 225 target, perhaps even more so given its new Tech composition.  We continue to reduce holdings due to strong fundamental concerns and that the favorable cosmic influences do NOT Extend to Japan Inc. itself, just its stock market.
• HONG KONG/CHINA - Pinning one's hopes on Disney is goofy and childish. The latest US rate interest increases are not good for Hong Kong without a devaluation.  As for the mainland, most of the industries are a mess at best.  Political problems/potential violence in 2001! Continue to AVOID
• INDIA- Computer ADRs will be increasing favorites of global money managers. Also worthy of world class interest is their pharmaceutical sector.
• AUSTRALIA has benefited from continued natural resource appreciation and limited Asian recovery. We are more neutral now.
• ISRAEL - Israel's technology sector will continue to outperform given its highly skilled labor force and favorable tax treatment.  However, like the US, it is overvalued and bargains are hard to come by.

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 emerging markets such as Russia (Putin and Kasyanov notwithstanding). 

Despite slightly higher interest rates on the horizon over the next year, real assets are desirable and may outperform financial assets.  Despite the fact that we do live in interesting times, we continue to repeat our mantra is: BORING IS GOOD.
Basic industries such as Construction, Energy, Real Estate and Utilities are safe haven favorites. But if you are bored, you will also want to be entertained. Our 2000 entertainment recommendations such DIS and TWX should have already been sold. Media stocks such as NYT are holds and buys after stock market corrections.  A European conglomerate stock like Vivendi (VVDIY) could be ideal being based in Utilities, Communications AND entertainment. Think in terms of tangibles. If you are a very aggressive investor and have high risk tolerance, some commodities, along with stocks, bonds and cash may be appropriate.

There are two cosmic markers finishing 2000 and early 2001:

• First two passes of Jupiter opposite Pluto September 4 and October 13th - possible changes in M/A accounting rules and activity. The final pass is May 6, 2001.  This is midway between the Jupiter/Pluto conjunction of December 94 when "whales first started swallowing whales" and December 2007 when retiring baby boomers are forecast to exit markets en mass. In addition to increasing opposition to merger mania and globalization ala World Bank and IMF wishes, sectors such as Biotechnology, Robotics and Successor Energy will continue to march forward to center stage.
• The first two passes of Saturn opposite Pluto are August 5 and November 2 in 2001 and May 26, 2002.

SHORT TERM
If we consider May 3-5 similar to August 87, then the following three weeks could be similar to October 87: due to with cycle compression, the market action unfoldment will occur in days rather than weeks. The month of May is the most dangerous of times, with the highest risk.  Maybe nothing will happen, but unless you are prepared for a great storm, you could consider yourself foolhardy in retrospect. Consider yourself warned and act appropriately.

INTERMEDIATE TERM
The three July eclipses will be probable pivot/market turns.
We foresee at least one more big up and big down move this fall: One move will be an early October scare ~9/24-5.  Another is an election push ~10/10 with an early "January effect": in the Technology sector even more than small caps.  Nasdaq is likely to outperform DJIA at that time.

LONGER TERM

• No one can postpone the date of the next total eclipse of the Sun, which will take place on June 21, 2001, in turn followed by Saturn opposite Pluto on August 5, November 2 and May 26, 2002 (Key Pivot month).

As we move to 2003, Saturn goes over the US Sun and low point of the nodal cycle is reached 2008.

• Construction
• Education
• Media
• Energy (Short Term)
• Health Care
• Precious Metals
• Transportation (Auto/Rails)

This summer (June 30, 2000) Jupiter moves into Gemini, helping transportation and communication sectors.

• While wireless usage will easily meet optimistic usage expectations, I prefer to buy only when there is some real value in this sector, e.g. rather than buying Nokia (NOK), I will buy ATT (T) with its mixed horoscope and fundamentals for a trade back to 42.
• While this will benefit companies like Fedex, I prefer the railroad companies for conservative portfolios, e.g.  UNP or BNI or if you desire the "Canadian Kicker" CNI and CP.
• However, there is more relative value in transportation stocks such as General Motors (GM), Ford (F), or Volkswagen (VLKAY) with its Euro kicker.
• We are downgrading real estate from a strong buy to a hold. While we still like REIT's, interest rate increases will peak property prices this month and expect them to decline into December. [May 22 post conference Note: It appears RCP agrees as Rockefeller Center is again up for sale, although I think their astrologer advised them a bit too late!  The owners, Rockefeller Center Properties Inc. bought the buildings in 1996 saving them from bankruptcy.  They had earlier sold the property in 1989 to Mitsubishi Estate Co. for $1.5 billion at the top of the previous Real Estate market cycle.]

We will continue gradual Distribution in Oil sector stocks this summer.  Gold and Oil prices to a lesser extent will benefit from future US $ declines.

We recommended extremely high cash positions for the first half of 2000.  We believe should the stock market remain robust, there will be more US interest rate hikes.  Thereafter, we recommend some accumulation, but European long term foreign investors may need to hedge periodic US Dollar under performance in 2001. while global US investors may prefer German Bonds next year. We continue to recommend holding  positions in select natural resources (Gold) and high yielding REIT's.

I begin with one or more of the following 4 criteria:
A. FALLEN ANGELS: 90% from 52 week HIGH or near 2 year LOW
B. CASH RICH, not stock rich (Survival of the Fittest)
C. UNDERVALUED using Business Appraisal methodology, e.g. Morningstar
D. GOOD HOROSCOPE or in upcoming COSMIC SECTOR Theme:
    1) Jupiter/Saturn conjunction
    2) Jupiter in Gemini
    3) Jupiter/Pluto opposition (late 2000)

FAVORITE 2000 STRATEGY HEDGING:
BUYING STRONG STOCKS/MARKETS and SELLING WEAK STOCKS/MARKETS

• Positionally, we hedge by shorting the SPZ and buying strong stocks or by buying the SPZ and shorting specific stocks which should do poorly both from an astrological and/or technical viewpoint, and which are so overpriced as to make any sane investor think thrice before buying.
• Initially, European stocks would fall in sync with US markets. However, on the positive side, this is near the bottom of the EuroSTART,  look to balanced hedges such as "Buy RD/Sell XOM", "Buy ABN/Sell CMB" and "Buy UL/Sell PG".

1. As the S: Netherlands is our favorite 2000 country, you may wish to accumulate at least their top 5 stocks in 2000/2001. The Netherlands is the single best European country to prosper in a borderless Euroland.  This is due to both historic reasons AND the horoscope of the Dutch Stock Exchange, as well as the individual charts of Phillips, Amro, Unilever, etc.
Buy EWN (Netherlands I-Shares or Webs) or selectively buy some of the following companies:

• Unilever (UL)
• ABNAmro (AAN)
• Philips (PHG)
• Shell (RD)
• Ahold (AHO), Aegon (AGN), Equant (ENT) and Heineken (HEI) etc.

3. Until Gold reaches our target of price $378, we continue to be relatively bullish on precious metals into 2001. Until Gold is above $325, we continue to prefer the majors: Barrick Gold (ABX), Homestake (HM) and Placer Dome (PDG).  Defensive money managers will continue accumulating energy stocks for the long term.  We expect to distribute the later two of our three previous top picks Shell (RD), Sunoco (Sun) and Schlumberger (SLB).

4. DJIA FAVORITE 2000/1 stocks, i.e. hold/buy on an intermediate-long term on a relative basis, General Electric (GE), General Motors (GM) and IBM.

• (1) We expect relative mediocre performance of Dow Stocks and Diamond Index (DIA).
• (2) High possibility of a Philip Morris break up in 2001 will do wonders for its stock price.
• (3) Microsoft (MSFT) continued battles until next year's conference, although most likely it will be a buy in Fall 2001.

5. FUTURE TECHNOLOGIES
Since before we became one of the first apple dealers in NYC, we historically have liked betting on small and micro cap public companies.  This we recommend doing in a basket of stocks. See our S: LAS VEGAS INVESTING posts. Our current five favorites are:

APPLIED ROBOTICS: International Hi-Tech Industries (IHITF)*
BIOTECHNOLOGY: Celsion (CELN)
INTERNET BUSINESS: Wamex (WAMX)*
ONLINE EDUCATION: VCAMPUS (VCMP)
SUCCESSOR ENERGY: Energy Conversion Devices (ENER)

*6. 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 companies we now consult for.

 1. EWN- Dutch/Euro themes.
 2. GE - Best DJIA Horoscope and fundamental meeting of earnings expectation
 3. GM - Transportation (Jupiter in Gemini) and value themes.
 4. ABX (HM)- Gold, Canada and US dollar decline themes.
 5. 50%-50% combination of IBM and QQQ - or Future Technology Stock  basket
    [20%@ IHITF, CELN, WAMX, VCMP, ENER] - Technology theme.