Earnings and Stock Returns
Let me ask you a simple question:
Does it seem logical to you that earnings (corporate profits) would drive stock market returns?
I certainly thought so. Specifically, I hypothesized that rising analyst earnings estimates for the S&P 500 would be positively correlated to stock market returns.
I was, however, surprised by the results when put to the test with actual market data since 1997.
In this short (9.5 minute) video presentation, I explain exactly what I found and what it means for the stock market right now:
Note: Each month, I host a 90-minute webinar and Q&A session with subscribers to my premium Income Options service. This is an except from that webinar, originally held about a week ago.
I’d also like to invite readers of the The Free Market Speculator to leave comments or questions, I’ll do my best to respond to as many comments as possible or to address common questions in an upcoming post.
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DISCLAIMER: This article is not investment advice and represents the opinions of its author, Elliott Gue. The Free Market Speculator is NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters and posts should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision.