© 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:

• The second and third Jupiter/Neptune oppositions Feb 16 and June 3 2003,
• August 30 Jupiter/Uranus Opposition,
• November 23, 2003 Total Solar Eclipse,
• Progress on the War on Terror and the 2004 US Presidential Elections.
  

Four Big Investing Ideas

1. US DOLLAR  REMAINS UNDER PRESSURE IN 2003     
Everyone knows now that the US dollar has already peaked. While Europe's ongoing malaise and Japan's long suffering economy make it possible that it could be a few months before the dollar drops more, investors need to diversify their investments globally. The average American has less than 5% of his assets in foreign holdings. The inevitable decline in the dollar’s value makes foreign investments more attractive. Stock prices are cheaper by most valuation measures: price to earnings, price to sales and price to book. Intermediate term, we expect interest rates to increase due to some economic growth, a lower US dollar and future inflationary worries. One lurking potential danger is that it may become necessary for the FED to defend the US  dollar.
Our recommended US equity portfolios international stock allocation is 25%.      

2. JUPITER/NEPTUNE THEME: HAPPY DAYS ARE HERE?
Let the good times roll and will it be back to "What ME worry?" The trend of more realistic stock valuation from "new economy" to more traditional levels that began with Jupiter/Saturn conjunction in 2000 may become temporarily lost with this new cosmic zeitgeist. Initially, it was expressed by investors having MORE (JUPITER) ANXIETY (NEPTUNE):
Richard Berner, chief US economist at Morgan Stanley, unknowingly made an incredibly accurate astrological statement of this zeitgeist: [Brackets mine]
From the perspective of the economy, uncertainty [Neptune] is the enemy [opposition] of Growth [Jupiter].  Roughly just before Neptune went direct October 20, it was More (Jupiter) Uncertainty (Neptune).
October 10/11 we saw the one example of  Expansion (Jupiter) without Limits (Neptune) with a quick 20%+ rally.
Note: December 4, Jupiter went Retrograde and will return Direct on April 4, 2003.  


We previously spoke of more and better (Jupiter) Wine (Neptune). Today there is a global wine glut because of over planting and over exuberance, thinking that we were never going to have enough grapes.  Remember, Neptune also co-rules OIL! 

3. A WAR TIME ECONOMY: GUNS AND CAVIAR REDUX

4. THE END OF THE HOUSING BUBBLE
August 1, 2002 Jupiter left the sign of Cancer [home] for Leo, the first of several astrological factors that will loosen astrological underpinnings of the current real estate bubble. Housing, along with Commodities and physicals, is now viewed as an Asset Class along with Stocks, Bonds and Cash by many investors. Positively, there is the enjoyment factor: most woman would prefer to have an additional 100K in a home than in a portfolio. Housing also appeals to safety concerns in times of trouble, but home buying is cooling. Record low interest rates are soon ending. Other negatives include the ratio of home prices to home rental rates is more than 12% too high, while the value of individually owned residential property to deposable income is at a 50 year high. Classically, the Real Estate weakens 12-24 months after a market collapse. If individual stock prices can return to pre-1998 pricing in the Fall of 2002, why can't housing drop 10-35% [depending on location and individual property] over the next 6-18 months? June 2003, Saturn enters Cancer. Let's not forget what Saturn in Gemini, e.g. Communications did to telecoms. Hopefully it will NOT be that bad: Favorable tax treatment along with continuing demand could continue to help make this a slowing market with a soft instead of hard landing. 

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?

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.        

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         

• GERMANY- Market perform. 
• HOLLAND - Market perform.
• ENGLAND - We rate the CITY a strong outperform, especially after most Iraqi issues are moved off the front page.
• FRANCE - With Jupiter in Leo, France should modestly outperform.
  
• GREECE - The ATG is a potential trading accumulation ahead of the 2004 Olympics.
• SPAIN - Trading opportunities as Argentina crisis recedes.
  
• EU EXPANSION countries, the Czech Republic, Poland, Hungary, Cyprus, Slovenia, Latvia, Lithuania and Estonia remain on Watch as they are likely to compete inside the EU's single market from 2004 on. However, there is little for foreign investors to buy outside of the banks. In the non-financial area, many of the best companies are likely to be bought out, rather than going public. Finally, shares prices there already reflect European entry which  means the "easy" money has already been made.
  
Note: WSNW subscribers can review our favorite S: Dow Jones Stoxx 50 stocks.             

NORTH AMERICA - Traders paradise

• S: CANADA - While a surprise to many "experts" that Canada lead the G7 economies once again, the news is out. While recently downgraded by us, it does retain an "out perform rating." for 2003. The Canadian Dollar is still a bargain and will outperform the US Dollar by more than 3% in 2003. 
• MEXICO - Buy only stocks that clearly benefit from NAFTA, are in a favored sector like entertainment (TV) or likely to be a takeover target like Banacci was by Citibank, AHISA by MetLife or Bital by HSBC.
• UNITED STATES - Still overvalued versus global counterparts. Many former investor favorites will disappoint as investors sell rallies to "get even". US Bonds will be far less attractive, especially after Q1, especially compared to Quality Corporates. The US Dollar remains a potential time bomb: It is no longer as safe a haven given budget deficits and the War on Terror. However, since one can trade stocks here for 10-25% appreciation/depreciation a day/week, this remains TRADERS HEAVEN. 
  

• S: JAPAN - It is important to realize that there is a recovery in the Japanese economy taking place. We expect to see a REAL resolution of their long term banking crisis in the coming year! Therefore, the Nikkei is now a long term buy to 16,000 using the 2004-5 time horizon. We see currency value in buying Japan should the Yen be weaker than 131 [Fair value ~126, the old Japanese BOJ worry zone vs.118, the 2002 worry zone]. While we still like exporters that will benefit from a cheap Yen, e.g. Sony (SNE),  Matsushita (MC) and Honda (HMC), domestic industries are no longer to be shunned.  JAPAN INC. [EWJ] is one of our favorite 2003/2004 countries, especially if the Yen weakens again to130 and more. Our mantra on JAPAN INC. is "You have Japanese products in your home; why don't  you  have Japanese stocks in your portfolio?"
• HONG KONG/CHINA - 2008 Olympics notwithstanding, the fact is that many of the mainland's industries are a mess and its stock market is overloaded with poor quality state owned companies. "Officially" China's economy continues to grow at more than 7% and will be the third largest economy in the world before 2020, after the US and Euroland. Yet its public debt is over 100% GDP if you include "off-balance sheet" accounting. Until this is rightly addressed, we continue to recommend great caution. Hong Kong also remain unattractive, especially as fundamentals often seem to matter little on the Hang Seng, and its stock market acts as close to legalized gambling more than any other major one in the world. For Asian investors (only), we recommend it for accumulation under 9500. On the bright side,  Hong Kong benefits from a spill-over effect from Chinese mainland's trade. The weakening US dollar also is another favorable factor for Hong Kong's export growth. Despite a far better economy, we also remain reluctant to invest in Taiwanese markets unless compensated for potential "war like" conditions in the future.
• KOREA- We continue to like blue chip giants Korea Telecomm (KT) and Samsung Electronics (SSNGF). A MAJOR peace dividend is expected next year or in 2004.  Like Taiwan, this is a largely a bet on the US technology sector.
• INDIA - Global investors are beginning to warm to computer and  pharmaceutical blue chips.  IIF or IFN are two closed end India funds, and the best way for US investors to invest (not trade) in India. This is for long term investors into 2004.
• AUSTRALIA - We remain mildly bullish for 2003 given our forecast for an appreciating Aussie $. We maintain our "out perform" rating country rating but are downgrading their LPTs (Listed Property Trusts) to market perform.
• NEW ZEALAND- Last year's Air New Zealand's action to strip out business class seating, meals, alcohol and soft drinks from its domestic flights was telling. Economic growth will remain slow for a variety of factors, not the least of which is weakness in dairy export prices. However if you wish to retire in this lovely country, note the NZ 40 has strong long term support around 1900.  
  

OTHER- Opportunities for savvy investors ONLY .

• S: ISRAEL - Israel's technology sector is desirable given its highly skilled labor force and favorable tax treatment. Unfortunately, it is best to buy only when there is blood in the streets, which is now all too often. Buy export quality with the TA 100 Index under 360. From mid to late 2003 on, this market could enjoy some good peace dividend rallies.
• RUSSIA - Many high risk investors primarily bet on the energy sector here, e.g. OGZPF, SBKYY, SGTZY, TNK and YUKOS. Now investors are motivated to buy further a field. Still, after a healthy double in 2002, due to positive economic performance and more rule of law, some caution is advised.
• BRAZIL - Assuming Lulu keeps his economic promises there is plenty of opportunity, especially for quality exporters such as CVRD thanks to the cheap, but stable Reais currency. As with most of South America, accumulate on weakness only for appropriate multi-year long term investment portfolios.
• ARGENTINA- Naturally the drastic devaluation in Argentina's peso is helping its export industries. A short term trading opportunity for smart money and longer term for multi-national corporate investments.
• CHILE - Once again it is the "safe" favorite of  Latin America portfolios.
  

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.

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

• Companies that will benefit from an improving economy. Furthermore many have not only written off good will, but pushed losses out of the way in order to clear the deck for 2003.
• We WILL have a slow economic recovery into 2003. However, public enthusiasm to spend, spend, spend will be subdued until job uncertainty is removed. Consumers are still in a financially weak position with little pent-up demand.  Our GDP forecast is just under 3% in H1 2003.

INTERMEDIATE TERM

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.

• Aerospace 
• BioTechnology and select Pharmaceuticals
• Entertainment and Media
  
• Gas and Successor Energy
  
• Gold
  
• Water, Wind and Wine 



• Our three favorite aerospace companies: Boeing (BA), Bombadier (BBD.A-TO) and United Technology (UTX). 

• Our  favorite drug stocks are Johnson and Johnson (JNJ), Pfeizer (PFE) and India's Dr. Reddy's Laboratories (RDY).  The best biotechs to buy are those with revenue generating products increasingly close to launch. The easiest way to play this sector is to either market the market leader Amgen (AMGN) or to buy a basket of 20 with the Merrill Lynch Biotech HOLDRS (BBH). We recommend buying under 90.
  
• Jupiter entering Leo August 1, 2002 helps the entertainment sector. Obviously, this includes a large variety of stocks ranging from Video Games such as Electronic Arts (ERTS) to the big four electronics companies, Philips (PHG), Matsushita Electric (MC), Samsung and Sony (SNE) are another. Flat-panel plasma and LCD televisions will increasingly be among the hot sellers for manufacturers and retailers of consumer electronics products in 2003/4.  Even if times get tougher, and people cut back, they still will desire entertainment.  Also we will periodically trading buy Best Buy [BBY].
  Select Media stocks, e.g. AOL and Yahoo (YHOO) are yet another. Fundamentally the fact that FCC is overhauling media ownership rules in the US also for a wave of buying and selling of media properties. Always profitable, rich dividend [7%], Cedar Fair (FUN) amusement park is a good excuse to research your investments.
• Select Diversified Energy companies such as BP and Norsk Hydro (NHY), are good long term bets. Solar Astropower (APWR) will offer more than 20% growth annually.  Similarly, Japanese companies such as Sharp (SHKAY) and Kyocera (KYO) are partial plays of  the solar sector.  Fuel Cell companies should be watched even though they will not be profitable ventures until 2004/5 at the very earliest. We also continue to look for opportunities to trading: buy older energy technology companies after big dips, such as Valero (VLO), Parker Drilling (PKD), TransOcean (RIG) and Royal Dutch (RD). Among gas producers: Burlington Resources (BR), Devon Energy (DVN), Canadian Natural Resources (CED) and EnCana (ECA).  One attractive long term buy and hold is Statoil (STO), Norway's largest oil and gas company. If you are bullish, industrial gases, like water and electricity, are essential to modern industry. Track Praxair (PX) which is the largest industrial gases company in North and South America. In low risk conservative, dividend oriented portfolios, we often hold Con Ed (ED) and KeySpan (KSE). 
• We find GOLD attractive, especially in Q1 2003. Our price target of $350 could be seen again in January 2003. It is also a good patriotic US dollar hedge. We recommend Placer Dome (PDG) short term, Meridian (MDG) and Barrick Gold (ABX) intermediate term and Newmont Mining (NEM) longer term for core holds in conservative portfolios.
• Wind companies, such as Denmark's Vesta and Spain's Gamesa are suitable for intermediate term SRI investment portfolios.  The number three and fastest growing beverage is Water, and bottled water may overtake cola in the next three years. The United Nations has declared 2003 as the International Year of Fresh Water. North American bottled water is projected to grow 20% annually for the next five years. Big Euro food groups, Dannone [DA] and Nestle [NSRGY], own the largest brands and  remain conservatively profitable.  However niche players like Vermont Pure (VPS) and microcap ICBG are also worth watching. German RWE and French SUEZ and VE for serious water works. American Stat Water (AWR) is a good domestic alternative in conservative portfolios. Constellation Brands (STZ),  FOSTERS (FBRWY), VCO and Vincor (VN-T) are potential "Peter Lynch" beverage choices for heavier drinking investors. 

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

     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..

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

• Japan (EWJ): Yen weakness - Honda (HMC), Matsushita (MC), Sanyo (SANYY) and Sony (SNE)
• Canada (EWC): $CD strength - Celestica (CLS), Inco (N), Placer Dome (PDG) and Sun Life (SLC).
• France (EWQ):  AXA, Dannon (DA), STMicroelectronics (STM) and Vivendi (V).
  
• United Kingdom [EWU] : BP strength - BP Amoco (BP), GlaxoSmithKline (GSK), Pearson (PRSNY) and Vodafone [VOD].  
• S: AFUND GLOBAL 12                              

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).                

• Microsoft (MSFT), while a cash machine, is both over valued and not well managed. We continue to advise selling on strong rallies.
• Disney will benefit from Jupiter in Leo.  
• A downgrade of MMM H2 is projected.  
  

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.