2001 MARKET FORECASTS

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

© Henry Weingarten Last Updated:

Some of the following material has been serialized in our newsletter WALL STREET, NEXT WEEK and our premium channels.  It was posted first to WSNW subscribers on 11/14 and will be updated publicly at our 9th Annual Astrology and Stock Market Seminar, May 17-20, 2001, in New York City.
Note: Hyper links that are prefaced with a S:, G: or P: are restricted to WSNW Subscribers.

There are 3 new primary phenomena affecting world events and global markets in 2001:



The first half of 2001 will continue the trend to lower corporate profits, eventually resulting in lower expectations or price/earning multiples. Short term, we expect interest rate increases. In 2001, it may become necessary to defend the US dollar and that will NOT be cause for a major stock market rally. Intermediate term, we forecast interest rate decreases.  Hence, Bonds and Bond funds will command increasing attention of global investors.

Fundamentally, for the stock market in 2001 to reach their 2000 highs is unlikely for Nasdaq. DJIA may close slightly positive on the year, especially if there is talk of future permission of some social security and/or greater tax sheltered funds into the market.

Capital Preservation will continue to be important  for global investors for most of  2001.  2001 investing demands extensive portfolio evaluation, diversification and more frequent trading in order to obtain very positive results.  Global money flows will no longer exclusively favor the US.  Eventually, however, the markets should have a year end rally above 10,000 and Nasdaq above 3000. 


HOW HIGH IS UP?
HOW LOW IS LOW?

2001 TRADING RANGES
DJIA: 8,800 to 11,660
NASDAQ: 2200 to 3880

VALUE WITH GROWTH
Just as stocks with 200 P/E are taboo now, so too will the 100 P/E stocks be next year.
We don't expect a single "parallel" market crash, but continued sequential ones - with more overpriced stocks dropping 20-30% in a day on "bad" news.
Our advice: Buy good stocks AFTER bad news, NOT before.

INVESTORS SHOULD BUY AND HOLD STOCKS IN 2001 THAT ARE:
1) Profitable,
2) P/E under 33 for TMT (Technology, Media, Telecommunications); 22 for others,
3) Less than 25% over Morningstar Value.


I GLOBAL INVESTING

BUY CANADA & NORTHERN EUROPE
TRADE THE UNITED STATES
ACCUMULATE ASIA

 GLOBAL 2001 MODEL PORTFOLIO WEIGHTING:
EUROPE: 35%   North America 45%   ASIA: 20%

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 by 2002


NORTH AMERICA - Traders paradise

ASIA/PACIFIC - Long term investment opportunities


OTHER- Opportunities for savvy investors ONLY.


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.  In 2002, the global investing landscape may be dramatically different. 


 II TIMING
Traders believe that "Making money in the market is all about Timing". The "Buy And Hold" climate we've had in the US stock market is PAST HISTORY.  It has slowly but surely given way to a "Market Timing" and “Stock Picking” environment.  Since May 2000, the new planetary theme became Jupiter/Saturn. This once every 20 year pairing of the two major planets best rewards Value AND Growth.

Despite the fact that we do live in interesting times, we continue to repeat our mantra:
BORING IS GOOD and VALUE plus GROWTH IS BEST.
Old-line technology companies such as IBM, Rockwell (ROK), Texas Instruments (TI) and United Technologies (TUX) will be relative safe heavens in 2001 and generally outperform.
Traditional safe heavens such as Real Estate and Utilities are tradable, but may give occasional sleepless nights.

Cosmic markers that began in 2000 that will finish in 2002:


INTERMEDIATE TERM

An early [December] and late [February] "January effect" in the Technology sector even more than small caps.  Nasdaq is likely to both outperform AND underperform the DJIA depending on which months you are looking, i.e. more Traders Heaven.

We recommend high cash positions for the 2nd quarter of 2001. Post tax time April will be punishing indeed for aggressive portfolios. We expect that tax revenues for both individuals and corporations will disappoint budget surplus calculators.  Consider yourself warned and act appropriately.

We will discuss the post summer solstice Solar eclipse markets in our May 2001 update.

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 the low point of the nodal cycle is reached in 2008.  December 2007 we have Jupiter conjunct Pluto, followed by Jupiter conjunct Neptune in 2009 and Jupiter conjunct Uranus in 2010.


III SECTORS
My new three favorite post millennium themes are: Hydrogen/Solar, Robotics, and Wind/Water.
The old themes of Technology, Communications and Health Care will still matter of course.
See Sector Coverage for 2000 Relative Sector Weighting updates.
Additionally, 2001/02 favorites sectors include:

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 begin with one or more of the following 4 criteria:
A. FALLEN ANGELS: 68-90% from 52 week HIGH or near 52 week 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 (Value plus Growth)
    2) Jupiter in Cancer
    3) Saturn/Pluto opposition

FAVORITE 2001 STRATEGY HEDGING:
BUYING STRONG STOCKS/MARKETS and SELLING WEAK STOCKS/MARKETS

Unlike the first quarter of 2000, we will be looking more to cash rich blue chips (companies that can buy back their own stock, e.g. ATT, IBM, GM), than small and midcaps.  As in 2000, our game plan is to invest conservatively, but due to recent high market volatility, we will begin to trade all accounts more actively. Five selected themes follow. For more and updates, visit the AFUND premium channels.

1. The S: Netherlands remain a favorite 2001 country as it 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 select companies:

2. We always like undervalued stocks, especially those with a yield greater than the classic value buy signal of 5% such as high yielding S: REITs, Goodyear Tire (GT) and Cemex (CX).

3. S: DJIA FAVORITE 2001 stock, i.e. hold/buy on an intermediate-long term on a relative basis is IBM.  As we expect relative mediocre performance of Dow Stocks and Diamond Index (DIA), Blue Chip stocks will have to be traded, not bought "buy and hold" for better than single digit returns in 2001.  Possible exceptions are: General Motors (GM), T  [Best performance for both likely in first quarter].  Second quarter on weakness, we plan on buying  Home Depot and possibly General Electric (GE).

4. FUTURE TECHNOLOGIES
Since 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. See our
P: FUTURE TECHNOLOGIES post. Our current three favorites are:

S: APPLIED ROBOTICS: e.g. Int. Hi-Tech Industries (IHITF)* and Robotic Vision (ROBV)
BIOTECHNOLOGY: e.g  Celsion (CELN) and StemCells (STEM)
SUCCESSOR ENERGY: e.g. Nuvera (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 companies we now consult for, e.g. International High Tech Industries and Cancall Communications.



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.
Henry Weingarten

(c) 2000, 2001  Please read our Full Disclaimer:
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