Strong recent returns ARE a combination of earnings growth (expected to remain robust in the next few quarters as shown in Exhibit 2) and investors’ willingness to pay more for each dollar of those earnings (likely helped by Fed policies and lack of attractive alternatives).
Despite swings in sentiment market fundamentals remain strong, but is there room for further improvement?
Economy finishes Obama era on steady footing, let’s see what Mr. Trump can deliver
The last blog post in the annual review series focuses on major economic indicators
Sales growth is coming from a handful of real stars and a whole bunch of M&A activity
Making sense of mutual fund rankings
This week I take a look at the long-term relationship between earnings, prices and P/Es.
Explaining the meaning of MULTIPLE EXPANSION and how it works with earnings growth to produce price appreciation.
The last blog post in the annual review series focuses on economic indicators.