Headline in today's WSJ : "Lackluster Earnings Leave Stocks on Thin Ice." The article continues -- "Investors had expected results to improve in the second quarter. Analysts are forecasting a 6% profit gain. Yet of companies offering guidance, 72% have warned that second quarter results could fall short of Wall Street's expectations, which isn't great but is better than the 80% level of the past three quarters."
So are forecasts of future earnings a way of predicting the trend of the market? Hardly, since predictions of future earnings are chancy and often wrong. Besides, stocks are subject to many more influences than just earnings.
Almost every day I receive a mailer from some guy or gal I've never heard of, warning me that I am in great danger of a catastrophic event such as a huge stock market crash or a collapse in civilization as we know it. The mailer then tells me ... Log in or subscribe to continue reading.
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