Study: does the year-over-year change in corporate earnings lead the stock market?

[Troy Bombardia]

Findings from the study:

1. From 1990 - present: earnings growth has peaked before the S&P 500 peaked.
2. Before 1990: the stock market peaked before earnings growth peaked

There is no consistent leading/lagging correlation. Sometimes earnings growth leads the stock market. Sometimes it lags. Moreover, sometimes the stock market continues to go up when earnings growth becomes negative.

https://bullmarkets.co/study-does-t...-in-corporate-earnings-lead-the-stock-market/

 

[tommcginnis]

VERY nice.
Straight-ahead work?
Data provided?
Conclusions supported by data?
Suh-weet stuff.

AND, IT'S INTERESTING!!!
"Nice!"