The facts about Market Truisms: Short Term Drivers In this eighth part of a 9 part series we will be giving you the actual facts surrounding what are considered to be market truisms to help you become a better informed investor. Truism 8- Short term earnings growth drives stock prices. Fact- In 2007 company earnings looked fantastic and the stock market subsequently fell by almost 60% over the next 18 months. Then in February 2009 company earnings were dreadful and expected to remain dreadful but the market rallied over 50% over the following year. The lesson as taught by Benjamin Graham and Warren Buffet, always look to buy quality assets at reasonable or better still, discounted prices. At Newealth we are always looking to innovate and improve our ongoing services wherever possible and if you have any ideas or comments, please feel free to email me via ‘Contact Us’ at www.newealth.com.au or to call me on +61 2 9267 2322.
3rd-March-2011 | 
