Regardless of whether an analyst claims that stocks are cheap or expensive, they should be expected to provide some sort of evidence that their methods have a strong relationship with subsequent market returns. (hussmanfunds.com)
There is not a single measure we've identified across history that has a stronger correlation with actual subsequent market returns, though several similarly accurate measures have comparable implications. (hussmanfunds.com)
As I've detailed previously, when earnings - based measures are used to explain subsequent market returns, the embedded profit margin almost always carries as much impact as P / E itself. (hussmanfunds.com)