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).
Reviewing Market Fundamentals
Despite swings in sentiment market fundamentals remain strong, but is there room for further improvement?
2016 Review: Economy Edition
Economy finishes Obama era on steady footing, let’s see what Mr. Trump can deliver
2015 Review: Economy Edition
The last blog post in the annual review series focuses on major economic indicators
Where Have All The Sales Gone?
Sales growth is coming from a handful of real stars and a whole bunch of M&A activity
Inside Baseball of Mutual Fund Rankings
Making sense of mutual fund rankings
Earnings & Returns: A Longer Look
This week I take a look at the long-term relationship between earnings, prices and P/Es.
Simple Math of Earnings, Multiples & Returns
Explaining the meaning of MULTIPLE EXPANSION and how it works with earnings growth to produce price appreciation.
2013 Review: Economy Edition
The last blog post in the annual review series focuses on economic indicators.