Thursday, December 12, 2013

S&P 500′s year-to-date return broken down by actual EPS growth and multiple expansion

Of course, EPS growth is what the actual earnings growth has generated while multiple expansion represents what buyers are willing to pay for this stream of earnings.  As sentiment has soared investors have become increasingly willing to pay for a reduced share of EPS growth.

No comments:

Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.