Stocks often rise in years when earnings fall

[Silver Ridge Market Report Logo] [Privacy Policy]( | [Advertiser Disclosure]( Senior Analyst Morning Brew Earnings are the most important driver of stock prices in the long run. But in the short run, their relationship isn’t as clear. In December, we talked about how the one-year change in S&P 500 earnings has a very weak linear relationship with the one-year change in the index’s price. Since then, a number of market watchers I follow have pointed out; There are many years during which earnings fall, but stock prices go up! Seth Golden of Finom Group shared an insight from Strategas Research. It shows that in 11 instances when S&P earnings (green bars) were down by at least 10% for the year, the index was either flat or up nine times. Stocks often go up in years when earnings are down. Indeed, it confirms the old saying: “The stock market usually goes up.” This is a salient observation in the early days of 2023, as many bearish stock market forecasts for the year are predicated on the idea that earnings are expected to be revised lower. And while this phenomenon is counterintuitive, it’s not necessarily a reflection of irrational behavior. [Privacy Policy]( | [Advertiser Disclosure]( [Overcomplicating your trading?]( I don’t know about you… But the idea of freedom doesn’t mean staring at your screen all day, watching blinking lights of stocks move up and down… Who wants to be a slave to the market? Not me. Wouldn’t you rather come in whenever you felt like, place a trade or two, and then go about your daily business? Most people never achieve this type of freedom…especially most traders. Instead of simplifying, they over complicate. You see, you don’t have to memorize anything nowadays. You just need a good “GPS” If you asked someone how to get from Texas to Louisiana…they’d have no clue. But if you gave them a GPS, it would be easy peasy. Well, we created a “GPS” system for traders… And for a limited time, you can get your hands on it. [===>Click here to get it now!]( [Privacy Policy]( | [Advertiser Disclosure]( 406 Media and Silver Ridge Market Report, is not giving individualized financial advice. Never invest more than you are willing to lose. 406 Media or Silver Ridge Market Report is not giving financial, investment, or stock advice. Our content is designed for generalized informational purposes only. If you have specific questions about investments or stocks you should consult a financial advisor. Articles, News, Or Other published materials are not always the views of 406 Media and/or Silver Ridge Market Report. If you feel you are receiving these emails in error please email Support@SilverRidgePro.com or click the unsubscribe button below. 30 N Gould St, STE R, Sheridan WY 82801 This e-mail has been sent to {EMAIL}, [click here to unsubscribe](.