Practical analysis for investment professionals
04 October 2013

Weekend Reads for Investors: Stocks Surge, Will Earnings Follow?

Posted In: Weekend Reads

Investors unnerved by news that US companies have been talking third quarter earnings estimates down at the second highest rate since 2001 might take solace in the fact that this year’s second quarter captured the top spot for negative revisions — not bad for a period in which the S&P 500 Index returned a respectable 2.9%. US stocks tacked on another 5.2% in the most recent quarter, and most developed markets followed suit. Japan’s Nikkei 225 Index was up 6.3% during the quarter, while China’s Shanghai Composite returned 11.1%. European stocks led the way, with most countries seeing their stock markets surge by double digits. Stocks have been buoyed in large part by central bank accommodation, but for them to remain aloft companies will likely need to deliver on the bottom line.

Here are some stories you may have overlooked in recent weeks.

Strategic Thinking

Moving Beyond the Financial Crisis

Shareholder Values

Asia in Focus

Tesla Skeptics

All Atwitter

Behavioral Problems

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

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About the Author(s)
David Larrabee, CFA

David Larrabee, CFA, was director of member and corporate products at CFA Institute and served as the subject matter expert in portfolio management and equity investments. Previously, he spent two decades in the asset management industry as a portfolio manager and analyst. He holds a BA in economics from Colgate University and an MBA in finance from Fordham University. Topical Expertise: Equity Investments · Portfolio Management

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