Search
  • Julie Skye

Have you ever been just reading along and...

...


...a sentence makes your eyes pop out like the cartoon characters of old? Today, in my morning update from the Wall Street Journal, this estimate was in with the other WSJ updates:


"Analysts predict second-quarter earnings will contract by about 3% from a year earlier, which would be the biggest earnings decline since the second quarter of 2016, according to FactSet. More than 80 S&P 500 companies warned that their second-quarter financial results will be weaker than initially expected."


The rule of thumb is that a stock 's price is directly correlated with earnings. So, if earnings are down 3%...stock prices should / could / would decline by 3%.


I thought..."hmmm...what will happen to stock prices IF 2nd Quarter 2019 earnings DO, in fact, come in weaker than the 3% now expected? Then, I asked; "What if some earnings are down more?"


The answer is...each company's stock price will fall in lockstep with earnings. AND, it will also respond, in like fashion, to the guidance for next year's expected earnings.


Add to that, one of my Top 5 Market Moguls, Gary Shilling's recent post: https://www.thinkadvisor.com/…/gary-shilling-the-recessio…/…


This definitely falls in line with my last two newsletters "9th Inning Investing."

13 views0 comments
Contact Us
(918) 408-7981  |  info@sustainableadvisorsalliance.com
SAA-Logo-Horiz-white.png

36º North  |  36 East Cameron  |  Tulsa, OK 74103

© 2021 Sustainable Advisors Alliance LLC. All Rights Reserved

 

Sustainable Advisors Alliance, LLC (“SAA”) is a registered investment advisor registered with the SEC. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by SAA in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of SAA, unless otherwise specifically cited.  Material presented is believed to be from reliable sources and no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.