Earnings Does Not Equal the Market

Some interesting stats via Bloomberg:

“Based on the past 90 years, the S&P 500 is actually slightly more likely to have a down year when EPS grows by over 10 percent than when it grows by less than 10 percent,” write a team led by senior equity and quantitative strategist Dan Suzuki. “In fact, of the 29 down years for the S&P 500, EPS growth was positive almost 70 percent of the time and up double-digits close to 50 percent of the time.”

This really isn’t much of a paradox. The market moves ahead of time. By the time the thing happens, it’s usually too late.

Posted by on February 5th, 2018 at 2:17 pm


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