Earnings, Inflation and Stock Returns
June 20, 2006 - Economic Indicators, Fundamental Valuation
In their February 2003 paper entitled “Stock Returns, Aggregate Earnings Surprises, and Behavioral Finance”, Jonathan Lewellen, S. Kothari and Jerold Warner explore the relationships between overall stock market behavior and aggregate corporate earnings, looking for parallels with firm-level price-earnings behavior. Using quarterly data for 1970-2000, they conclude that: Keep Reading