Some insights only come by having the right tools. We share five things we have learned about stock index valuations, earnings, currency, and why value investing isn't dead. Topics covered include: How index providers divide the stock universe into large and small, growth and value The difference between the price-to-earnings ratio and earnings yield and which is better How earnings volatility can impact annual earnings growth and what to use to estimate future earnings How … [Read more...]
305 Plus: Mid Month Update, Tesla, Earnings Surprises, and Cadence Lending Platform
In Plus Episode 305, we review stock market returns month-to-date and the latest economic releases. We discuss the impact of Tesla and other high-flying stocks being added to stock indices and a fundamental approach to indexing that avoids large weightings in the most expensive stocks. We review how stock analysts estimate company earnings and why companies are more likely to exceed analysts' estimates today versus prior to 2002. Finally, we consider the risk and opportunities with the … [Read more...]
105: How Corporate Profits Drive Stock Returns
What drives corporate profits over time and how do they contribute to long-term stock returns. In this episode you'll learn: What drove U.S. stock returns over the past thirty years. How long-term corporate profit growth has tracked per capita GDP growth.What contributes to long-term corporate profit growthWhat are the things corporates can do with their cash. Show Notes Research Affiliates - The Profits Bubble by Chris Brightman FactSet Earnings … [Read more...]