Study: do corporate earnings lead the stock market?

Discussion in 'Trading' started by Troy Bombardia, May 6, 2018.

  1. Findings from this study:

    1. Corporate earnings growth tends to peak before the stock market does. So even if this is peak earnings growth (right now), the stock market probably hasn't peaked in this bull cycle.
    2. Sometimes the absolute value of corporate earnings leads the stock market. Sometimes the stock market leads corporate earnings. There is no definitive relationship as to which one leads/lags first

    In other words, it's better to focus on the economic data when predicting the stock market than corporate earnings.

    https://bullmarkets.co/study-do-corporate-earnings-lead-the-stock-market/
     
  2. dozu888

    dozu888

    in other words, nobody has a clue
     
    samuel11, Jakobsberg and Saltynuts like this.
  3. lolol, my thoughts exactly reading that. its the wild wild west.
     
  4. pipeguy

    pipeguy

    We know that nothing works in trading... nice conclusion all we do is random guesses