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

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-the-year-over-year-change-in-corporate-earnings-lead-the-stock-market/

Submitted May 08, 2018 at 04:30AM by markethistory https://ift.tt/2woBl1H