The behavior of the stock market is inherently so complex that no single variable can predict how the market is going to behave next or what would be its future returns - at least not on a regular and consistent basis.
Market swing like pendulum from optimistic to pessimistic and occasionally overshooting which resulted a panic situation.
In the long run, corporate earnings and dividends have provided a steady underlying stock market return.
These fundamentals of economics are the result of growth, productivity, and prosperity in our economy. Whereas emotional returns on stocks represent the impact of changing public opinion about stock valuations – again it changes from month to month and daily from optimism to pessimism, we called it PE return.
As you may notice , I have a series of collection of “ The Little Book of XXX “ in my book list.For those unaware, the Little Book series by Wiley Publishing is a series of small hardcover books......