Goldman Sachs analysts believe investors and traders in the stock market are acting irrationally.
“Cognitive dissonance exists in the US stock market,” Goldman Sachs’ David Kostin said. “S&P 500 (GSPC) is up 10% since the election despite negative [earnings per share] revisions from sell-side analysts.”
Earnings and expectations for earnings growth are the most important drivers of stock prices in the long run. In the short run, however, earnings and prices will often diverge.
Submitted February 21, 2017 at 09:55AM by InVan http://ift.tt/2l3W8NV
