The calculations for the VWave are based on Value Line's Appreciation Potential(VLAP). And for the past 5 weeks the appreciation potential for VL's 1700 stocks for the next 3-5 years has been 50%. If you refer to Tom's explanation in post 36223 and 36235, he does an outstanding job of breaking down how he came up using the VLAP. Remember, as he states in the last sentence:
"Overall, the VWave is conservative and cautious in its suggested cash reserve level. Much like a barometer, it does help one get a feel for what has been going on and what might be expected in the near term."
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