The Trump Rally: One Year Later

This week marked the one-year anniversary of what was widely considered to be the surprising election of Donald Trump as the 45th president of the United States. Politics aside, it is impossible to ignore the move in the U.S. stock market since the close on November 8, 2016. Through Tuesday’s close, the Dow has risen…

 

Majority of Investors Worry About Divergence Between Corporate Earnings & Market Levels

According to FactSet, as of the market close on August 25, over 98% of companies in the S&P 500 have reported earnings for the second calendar quarter earnings season. Of those, 71% have reported positive earnings surprises–actual earnings were above the mean estimate. For the second quarter, the blended earnings decline–reported earnings decline as well…

 

What is the Most Tax-Efficient Investment?

An AAII member recently asked, “What is the most tax-efficient investment?” Before you answer, stop and give the question some thought. The answer is not as straightforward as it may seem. A few factors influence the tax efficiency of investing. One, of course, is the type of investment. Municipal bonds receive very favorable tax treatment,…

 

Are All Earnings Surprises Equal?

As we finish another quarterly earnings season, statistics show that companies are generally beating their EPS targets with ease, yet we are not really getting positive stock price reactions from these supposed positive earnings surprise. Positive earnings surprises occur when actual reported earnings are significantly above the forecasted earnings per share. Negative earnings surprises occur…

 

Earnings Estimates: A Primer

This article originally appeared in the May 2015 issue of the AAI Journal. Earnings estimates are the profit forecasts made by brokerage firm analysts. The consensus earnings estimate is the average of all published forecasts for a specific company or index. The consensus earnings estimate is compiled by a small number of companies, such as Thomson…