Predicting The Market With Earnings Per Share by Randall J. Covill
ARTICLE SYNOPSIS ...Predict The Market With
Earnings Per Share
by Randall J. Covill
Take a look at the relationship between changes in earnings
per share for each year and the performance of the market for
the following year. Is there a correlation?
One of Benjamin Graham's investment
classics, The Intelligent
Investor, has a chapter in
which he discusses a comparison
of the change in average
stock earnings and the change
in average stock prices. Intrigued,
I decided to graph and
calculate a linear correlation
coefficient for the actual level
in average stock earnings for
the Standard & Poor's 500 versus the ac...
AUTHOR: Randall J. CovillDATE: JUL 1998SUBJECT: Trading Techniques