Sentences with phrase «whether peak earnings»

GDP is the best read the stock market has on whether peak earnings will arrive sooner than expected.

Not exact matches

So if we look at a range of market valuation measures, whether it's Shiller CAPE, whether its price - to - book, whether it's price - to - trailing earnings, price - to - peak earnings, when we look at these measures, they look like they're in the, what we would call, the 10th decile, meaning generally, valuations are cheaper 90 % of the time.

The differences in opinion arise primarily over valuation and whether its rapid growth can continue to justify a price - to - earnings ratio that rarely falls below 40 and has peaked as high as 138.

Therefore, when trying to determine whether stock prices are simply correcting or signaling the start of a Bear Market, we believe it is important to ascertain if the economy is headed for recession, and if earnings are peaking and likely to meaningfully decline.

I'll leave it to others to chime in whether forward P / E's are useful or not given the fact they typically overstate earnings and I'll ignore that earnings may be at a cyclical peak (more on the latter here).

The ratio itself may not be predictive because it ignores whether earnings are at a cyclical peak.