Stocks with sharply increasing forward earnings per share vs. prior year or current year.
In a December 1997 issue of Barron's, a Merrill Lynch poll found that the top strategy among 122 institutions surveyed was to buy stocks of companies that exceed earnings expectations and sell the companies that fall short.
Quarterly earnings reports are among the most powerful of the underlying fundamental factors that drive stock prices.
Friday, June 1, 2012
Russell 2000 stocks are most vulnerable to latest weak Job Numbers.
IWM etf will sink fast as economy stumbles.
Why? are Russell 2000 stocks most vulnerable? Small caps don't have the cash the big caps do to be able to survive a downturn in the economy. When economy goes south you see small caps go south quickly. Its just how the world works, the strong survive and the weak die.