There are 3 primary phenomena affecting world events and the markets in 1999:

• The birth of the ECU January 1
• A total solar eclipse all over Europe on August 11
• The birth of the Millennium and Y2K

Therefore, I strongly recommend Capital Preservation as the number one priority for global investors in 1999 and 2000.

See Jean-Francois Richard for a CAC 40 1999 forecast in harmony with mine that largely applies to many of the European bourses, and the SP500 as well.

THE HOROSCOPE IS A MAP OF TIME AND PLACE - here is a brief overview of some of the world markets we cover:

ASIA - Long term investment opportunities

• JAPAN - Mixed picture till after 2000. We are buying the Yen at 130 OB, and exporting and construction companies.
• HONG KONG/CHINA  - We like select blue and red chips long term, but AVOID OR SHORT (BIG RED FLAG) China early 1999.
• KOREA - Not as much a bargain as in 1998, but buy key companies on dips.
• SINGAPORE - Will selectively benefit from Asian situation intermediate term.

EUROPE - Relative strength, especially in Northern Europe

• GERMANY - A 1999 favorite as German behemoths merge/acquire globally.
• HOLLAND - Replaced Italy as our "favorite country" in 2000.

NORTH AMERICA - Traders paradise

• CANADA - Summer/Fall 1999 gradual recovery and prosperity in 2000-2002!
• UNITED STATES - Overvalued and a ticking time bomb before May 2000. Beware as the US dollar is no longer the ONLY safe haven with new competition from ECU and even GOLD.  However, since one can trade stocks here for 10-25% appreciate/depreciation a week, this is TRADERS HEAVEN.

AFUND COVERAGE Forthcoming:

• AUSTRALIA- Like Canada, will benefit from natural resource recovery.
• DENMARK- If we are successful with our Copenhagen seminars, we will be adding Scandinavia coverage.
• SOUTH AFRICA

Traders believe "Making money in the market is all about Timing".
Since 1997 and before, two big cosmic markers have dominated the stock market:

(1) The first planetary theme was Jupiter/Neptune, or what Alan Greenspan named "irrational exuberance".

(2) The second planetary theme has been Jupiter/Uranus, or "instant riches".

As we approach May 2000, the new planetary theme will be Jupiter/Saturn. This major pairing of the two planets will reward Value as much as Growth, and markets will show more traditional common sense valuations.

Over the next two years, real assets will continue to outperform financial assets. I believe $100,000 invested in Real Estate today will be worth more than $100,000 invested in the stock market. Basic industries such as Construction, Real Estate and Consumer stocks, or even Insurance and Education, will be favored. Precious metals and energy will begin to recover investor favor.  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 quite a few major cosmic markers in 1999. Markets do not usually go in a straight line.  Therefore, in 1999, we expect many dramatic shifts and conflicting currents resonating with the following planetary movements:

• We start this winter with a warning pair of eclipses January 31 and Feb. 16.  Together they may cut off any January effect rallies.
• Astrologically we will continue to be affected by Saturn square Neptune (recession) for some time.
• Later in the year due to Jupiter/Neptune aspects, we will also have some growth and possible inflation worries again.
• Additionally, Saturn in aspect to Uranus presages the Y2K computer crisis.  Saturn (drop) - Uranus (Technology) suggests that  the high flying computer stocks will come down to earth later in 1999. Take or protect your profits with any high risk, i.e. "value challenged" stocks.

Financial astrologers are looking to total solar eclipse all over Europe on August 11, 1999 as the "ring pass not" for the world's markets. Astrologically it is in some ways similar to the September 1997 total lunar eclipse all over Asia that helped trigger the Asian wide Crisis.

Example 1999 Relative Sector Weighting. See Sector Coverage for updates.

++
Construction
Real Estate
Insurance

+
Education
Health Care

+/- (Best short term trading opportunities)
Technology
Telecoms
 

Natural Resources
+ + Gold - $350-$400 test in 1999;
0/+ Oil  Beginning slow recovery second half of 1999

BONDS - Reduce after Q1 or hedge e.g. Sell US Bonds/Buy UK Gilts.

I like to begin with one or more of the following 3 criteria:
A. NEAR 52 WEEK LOW (a preference for fallen angels)
B. CASH RICH, not stock rich
C. GOOD HOROSCOPE OR IN UPCOMING COSMIC SECTOR THEME

1) Jupiter/Neptune
2) Eclipses 1999/2000
3) Jupiter/Saturn 2000

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

In general, we will be looking more to the small and midcaps than blue chips for the first part of the year.  Later in the year, our game plan is the reverse.  We are being rather conservative in our portfolio projections for the next 18 months, aiming for only 10-20%+. Of course that "+", may be a serious outperformer, if we are right about 1999-2000.

Six of our selected themes follow. For more picks and updates, visit the AFUND premium channels.

1. As the Netherlands is our favorite 2000 country, you may wish to accumulate at least their top 5 stocks in 1999:

• Unilever (UL)
• ABNAmro (AAN)
• Philips (PHG)
• Reed Elsevier
• Shell (RD)

3. Defensive money managers will be accumulating energy stocks for the long term. By 2Q, we will be buying Mobil (MOB), Shell (RD) and Schlumberger (SLB).

4.  We are continuing to accumulate construction sector stocks and selected Reits latter in 1999. Watch Caterpillar (CAT), Kubota (KUB) or International Hi-Tech Industries (IHITF).  SL GREEN REALTY (SLG) is an attractively yielding REIT, while my namesake Weingarten Realty (WRI) continue to outperform.

5. HIGH TECHNOLOGY

BIGGEST LOSERS will be the INTERNET STOCKS twinly afflicted by Saturn/Uranus and Y2K by the second half of  the year.  Expect a minimum of 50%+ losses for many of these "tulip" companies. Years ago, as a computer analyst, I wondered how Internet companies would eventually make money - what mix of advertising, subscription and/or e-commerce models.  The right answer was none of the above - but to sell stock to the public or be aquired by an old-line media company!

Good Companies, Good Horoscopes
Motorola (MOT) is the most reasonably valued of the Hi-Tech companies that we admire.  More than fully valued are Compaq (CPQ), Oracle (ORCL) , IBM, Intel (INTC), Lucent (LU),  and Sun Microsystems (SUNW), all WORTH buying on serious market dips.

6. DJIA

Henry Weingarten

PS. Can you afford NOT to have a financial astrologer in your future?

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.