earnings
The relationship between earnings and equity returns is more illusion than reality.
Earlier this week we polled CFA Institute Financial Newsbrief readers, asking, “To what degree do earnings estimates factor into your investment decision making?”
Brian Langenberg, CFA, dissucess his opinion of headline EPS results.
As most global stock markets have been on a tear of late, we thought it would be timely to ask readers what posed the greatest threat to equity markets. Over 37% of the 974 respondents to this poll believe that a global economic slowdown is the greatest risk to stocks.
A recent study designed to decipher the “black box” of sell-side analyst decision making sheds new light on the driving forces behind two important outputs of their work: earnings estimates and stock recommendations.