As an astrologer, I believe astrology can help you invest with out of this world results. In 2000, we correctly forecast that an investing buy and hold philosophy would underperform. The easy days of buying an index fund and getting rich effortlessly would not long work. Instead, market timing and stock selection would resume its traditional importance.
In 2001, there are two major astrological themes that began in 2000 and that will continue strongly into 2001. The major conjunction of planets in May 2000 in the sign of Taurus (Value) heralded a new multi-year theme of common sense and value. This is the main cosmic factor that timed the Nasdaq decline from 5000. This is why Value funds outperformed Aggressive growth technology funds. Today, TMT stocks with 200 or 100 P/e multiples seem as quaint as $800 gold. We expect the best Intermediate term performance from value stocks (Saturn) that also are growing (Jupiter). As we wrote in our 2001 Stock Market Forecasts:
Lower P/E valuations, but higher than historic norms which are slightly above DJIA 6000 and 2000 for Nasdaq. This picture started changing due to the Jupiter/Saturn conjunction in May 2000. Earnings and real business prospects now matter. Hence stock forecasting will become easier and somewhat more rational.
The second important investing
theme is the end of the US$ Bull Run. The secular US$ rally is over,
having ended with two peaks, one in May 2000 and one 6 months later.
If you liked $10 Oil, then you will love the Euro and the Canadian Dollar.
Hence, a shift of global capital will follow from the US into Europe and
will favor such northern European countries as Holland and Germany as well
as our northern neighbor Canada, which will once again outperform US markets
next year.
I believe the key lesson for investors to learn
from 2000 is clear by asking two questions:
1) Why would you invest like they did way
back in 1999?
2) Can you afford not to have financial astrology
in YOUR future?
TO BE CONTINUED © Henry Weingarten Last Updated: