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Follow the Quarterly Result Investing Herd at Your Own Risk
Nov 13, 2018


The quarterly earnings is a misnomer. But can investors expect a reflection of the earnings recovery instantly in the stock price?

Well, the market is certainly myopic. There is typically a big contrast between quarterly and annual earnings performance of companies and the extent to which they find favour among investors.

Over the last two months, for instance, stocks of companies that showed earnings recovery in September quarter, were as beaten down from 52-week highs as the stocks that underperformed in earnings. Beware of following such herds.

Instead, stick to the best safe stocks in the market.

Data source: Ace Equity

This Chart Of The Day was published in The 5 Minute WrapUp - Good News! Earnings Are Turning Around... Slowly

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