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re: Am I the only one who thinks the market's reaction to the coronavirus outbreak is...

Posted on 2/1/20 at 9:30 am to
Posted by LSURussian
Member since Feb 2005
127309 posts
Posted on 2/1/20 at 9:30 am to
quote:

Earnings are negative over the past year
No, they are not. You aren't reading the graph you posted correctly.

Earnings growth was slower in the fourth quarter 2019 compared to the first quarter of 2019 (likely because of the tariffs) but earnings are still positive.

Big difference.
Posted by UpstairsComputer
Prairieville
Member since Jan 2017
1594 posts
Posted on 2/1/20 at 1:41 pm to
You’re correct, I misspoke. Point remains that buybacks were the major driver of multiples expansion last year because earnings aren’t improving. Market went up nearly 30% on slowing earnings. How about that?

My favorite is buying companies for 30% more while their prospects dim. Love it.
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