It’s all about EARNINGS

Want to know where the market is headed?  Ignore the talking heads. It’s all about earnings (see below chart).  The stock market is correlated to corporate earnings, it’s that simple.  Sometimes it lags, sometime it leads, but over the long term they march together in lock step. So if you want to know where theContinue reading “It’s all about EARNINGS”

Unrealistic expectations of stock market returns

Ask someone what they think the average annual stock market return is and at a minimum you’ll receive an answer like 8-12%. People have extremely high, unrealistic expecations because the media and financial industry over hype the market during good times.  They also tout long term averages, sighting durations that exceed life expectancy by 100Continue reading “Unrealistic expectations of stock market returns”