Wall Street’s Earnings Forecasts
Forecasting company earnings is a critical first step in Wall Street’s favorite pastime–predicting stock market returns. As an investor, you are most likely exposed to forecasted earnings when looking at […]
The P/E Ratio
From the March 2010 newsletter: Last time we discussed Q, which seemed to predict future 10yr returns decently well for the US stock market. This time, I introduce a valuation […]
Valuing the Market With Q
From the February 2010 newsletter: Today, I introduce you to a stock market valuation metric called Q popularized recently by economist Andrew Smithers. Q is defined as the ratio between […]
Trying to Beat the Market
The NY Times recently highlighted an academic study that estimates the proportion of mutual fund managers that can truly outperform the market. These types of studies have been conducted countless […]
Why Indexing Is So Hard
The most counter-intuitive part of indexing is the avoidance of action, especially in an effort to beat the market. We generally associate hard work and hours of effort with success, […]