Posted by on Nov 18, 2018 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum

By Jason Zweig | Nov. 16, 2018 12:00 p.m. ET


The stock market used to reward companies for beating Wall Street analysts’ expectations of how much they could earn. That may be changing.

So far this quarter, through Wednesday morning, 161 companies in the S&P 500 that have announced better-than-expected earnings have had their stock price pounded down anyway, according to John Butters, senior earnings analyst at FactSet. From two days before the earnings announcement through the second day afterward, their shares have averaged a 5.5% loss....



To read the rest of the column:


For further reading:


Benjamin Graham, The Intelligent Investor

Jason Zweig, The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money

Articles and other research:


Earnings Surprises: The Stock Market’s Worst-Kept Secret

Why You Shouldn’t Buy Those Quarterly Earnings Surprises

The Right Way to Handle a Surprise

Can You See the Future? Probably Better Than Professional Forecasters

5 Ways to See the Financial Future

The Perilous Task of Forecasting

Behavioral Finance: What Good Is It, Anyway?