Comments on: STOCKS DECOUPLE FROM EARNINGS http://pragcap.com/stock-decouple-from-earnings Sun, 12 Feb 2012 06:49:06 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: TPC http://pragcap.com/stock-decouple-from-earnings/comment-page-1#comment-1016 TPC Mon, 04 May 2009 01:22:54 +0000 http://pragcap.com/stock-decouple-from-earnings#comment-1016 I agree. They're basically calling a bottom in earnings which is not necessarily true. The same mistake was made during the 2001 bear market, but if you look at the market the earnings trough occurred at the same time the market bottomed. If the same were to occur here the market would not actually lead the earnings trough as Citi says. I agree. They're basically calling a bottom in earnings which is not necessarily true. The same mistake was made during the 2001 bear market, but if you look at the market the earnings trough occurred at the same time the market bottomed. If the same were to occur here the market would not actually lead the earnings trough as Citi says.

]]> By: Onlooker http://pragcap.com/stock-decouple-from-earnings/comment-page-1#comment-1010 Onlooker Sun, 03 May 2009 13:02:07 +0000 http://pragcap.com/stock-decouple-from-earnings#comment-1010 Hmmm. I don't necessarily disagree with them but it's a bit of a leap. What if earnings keep going down for a longer period of time than they seem to be assuming? And we are just talking about an assumption based on analysis of just the past two recessions. Pretty shaky evidence and there's really not any good trend info there anyway.<br><br>You can pick out a period of time during those earlier recessions where prices were going up while earnings were still dropping; early '92 and late '01. I'm just saying that this thesis is rather thin and seems like a reach to justify the idea of the March low being THE low without being all out bullish on this rally. It's just a leap of faith and hope, just like that being taken right now by those who think we're in the new bull market.<br><br>Time will tell but this analysis doesn't really help.<br><br>What are your thoughts TPC? Hmmm. I don't necessarily disagree with them but it's a bit of a leap. What if earnings keep going down for a longer period of time than they seem to be assuming? And we are just talking about an assumption based on analysis of just the past two recessions. Pretty shaky evidence and there's really not any good trend info there anyway.

You can pick out a period of time during those earlier recessions where prices were going up while earnings were still dropping; early '92 and late '01. I'm just saying that this thesis is rather thin and seems like a reach to justify the idea of the March low being THE low without being all out bullish on this rally. It's just a leap of faith and hope, just like that being taken right now by those who think we're in the new bull market.

Time will tell but this analysis doesn't really help.

What are your thoughts TPC?

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