U.S. and World Newswire
:
Business
:
Reports and Studies
News
How Long Can The New Bull Market Last After Earnings Growth Rates Peak?
Published: Wed, 20 Sep 2006, 14:17:00 EDT
NAPLES, Fla. - Sept. 20 (SEND2PRESS NEWSWIRE) -- Halvorson Research Associates LLC (HRA), an investment research company based in Naples, Fla., is studying what happens to stock prices after earnings growth rate peaks occur.
 "After close examination," William A. Halvorson, president, said, "we discovered that prices of stocks, in general, do not automatically decline as overall earnings growth rates decrease. This is due to the fact that investors typically anticipate events and look beyond the present to future periods of earnings growth."
In May of 2005, earnings growth rates reached their highest level since the previous peak in October 2000. In Halvorson's study of 800 companies, the annual earnings growth rate reached 12.7 percent per year as compared to 8.8 percent in 2000. Other recent peaks showed 10.9 percent earnings growth rate per year in May of 1995, and 11.8 percent in January 1989.
"Negative movement in prices occurred after only one of these growth peaks," Halvorson explained. "This indicates that something else might account for the rapid decrease in prices after the October 2000 peak. The most likely factor affecting the prices investors are willing to pay for stocks is 'market sentiment.' "
HRA has developed a measurement of market sentiment - the GOPF Index of Market Sentiment - that divides sentiment readings into: Greed, Optimism, Pessimism, and Fear.
The GOPF Index was created in November of 1987 following the meltdown in prices that occurred on October 19, 1987 (-23 percent in one day) in an attempt to have some way of avoiding "investment timing" mistakes.
The GOPF Index plots actual stock prices against their theoretical values to determine which statistical range the stock market is currently in.
When stock prices exceed HRA's theoretical market prices by more than one standard deviation, HRA refers to it as: "Greed" territory. If the excess is less than one standard deviation, market sentiment is "Optimistic." When prices are within one standard deviation below expected market prices, sentiment is identified as "Pessimistic," and if more than one standard deviation below theoretical market prices - "FEAR" takes over as the predominant sentiment.
To view the entire report including the calculations of market sentiment and earnings growth rates between 1989 and now, please visit HRA's website at: www.HRAstockpicks.com or call 1-866-639-0061.
NEWS SOURCE: Halvorson Research Associates LLC
Send2Press® is the originating wire service for this story.
» Read More Reports and Studies News
» Other Send2Press Industry News by Category
More Information and Media Contact:
For questions about this story, contact the news source:
»
Click Here for Contact Information
THE CONTENT OF THE ABOVE NEWS STORY WAS PROVIDED BY THE NEWS SOURCE WHO IS SOLELY RESPONSIBLE FOR ITS ACCURACY. FOR QUESTIONS ABOUT THIS STORY CONTACT THE NEWS SOURCE AND NOT SEND2PRESS (THIS WEBSITE).
O T H E R R E S O U R C E S
T E R M S O F U S E
This article is Copr. © 1983-2008 Neotrope / Send2Press. Reproduction of this news article version requires written authorization. You may freely link to this article. Journalists (see the section "Journalist Resources" above) may use orig. news release as the basis for an article.
News Websites may republish the "news release" text version linked to above under "Journalist Resources" except must retain "Send2Press Newswire" as the source of this news if used verbatim. Websites which offer/sell PR or newswire services, or web promotion services, or "splogs" may NOT reprint our content in ANY form. Send2Press Newswire is a service mark of, and "Send2Press" is a registered trademark of, Neotrope. Creative Commons - Some Rights Reserved (3.0) - Attribution Required.
DISCLAIMER: the above article is believed accurate but not guaranteed, and is based on business news supplied by the source (Halvorson Research Associates LLC). The noted source is solely responsible for its accuracy. Financial/Stock news may contain forward looking statements. Neotrope/Send2Press makes no claims of accuracy or suitability for any purpose. Any opinions expressed by representatives of company(s) mentioned in news and profiles are solely those of the person indicated, and do not reflect any opinion or policy of Neotrope or Send2Press. Your use of any information contained herein is done solely at your own risk, and you are fully responsible for using any information herein, or on sites mentioned or linked to in the article. All trademarks acknowledged.
REFERENCES: How Long Can The New Bull Market Last After Earnings Growth Rates Peak?, Halvorson Research Associates LLC, William A. Halvorson, GOPF Index of Market Sentiment, Sep 20, 2006.
VIEWED BY MEDIA (and public): 2457 times (2 today, 4 this week,
17 this month, 412 this year)
| New Report Examines Pharmaceutical Sales Force Effectiveness |
| The Telecommunications Industry Stands to Make $1 Trillion over Five Years Promoting Environmental Improvements, says Insight Research |
| Optical Networking Equipment Sales to Top $120 Billion Over Five Years, Says Insight Research Corp. |
| Healthcare Industry Spending on Telecommunications Services Hits $55 Billion Over Next Five Years, says Insight Research |
| Business Leaders Expect No Growth from the Private Equity Market Over the Next 12 Months, Shows New Research |
| Hispanics and Other Ethnic Markets Will Spend $60 Billion on Telecommunications, says Insight Research |
| IPTV, Streaming Movie and Music Industry Will Generate $70 Billion Over Six Years, says Insight Research |
| Eularis Exposes Hidden Barriers to Patient Adherence with New Pharmaceutical Industry Report |
| Petrobras World's Most Sustainable Oil/Gas Company 2008 |
| Corporate Phone Bill Will Hit $133 Billion in 2008, Says Insight Research |
| New Copper Bonding Products for Telecommunications Will Grow Carrier Ethernet and Wireless Backhaul Markets Worldwide, Says Insight Research Corporation |
| Ballantine Corporation Releases Direct Mail Format Report |
| Telecom IT Spending to Exceed $46 Billion in 2008, says Insight Research Corp. |
| New Report Examines Pharmaceutical Sales Force Effectiveness |
| Spending on Managed Services Increasing As Enterprises Turn to Outsourcing to Handle Complexity, Says Insight Research |
| Worldwide Telecom Industry Growing Ten Percent Annually, Revenues Expected to Reach $2.7 Trillion by 2013, says Insight Research Corp. |
| Ballantine Corporation Releases Holiday 2007 Direct Marketing Industry Report |
| Falling Home Prices Cause Homeowners to Focus on Cost Savings When Remodeling |
| Subscribers to Telecommunication Services Continues Growing in 2007, Says Insight Research |
| Eularis Releases Update of Its Comprehensive Report on Maximizing the Bottom Line in Pharmaceutical Marketing |
| Residential Phone Customers' Move to Cable Calling Means Phone Companies Lose $8 Billion Over Five Years, Says Insight Research Corp. |
| Service Providers Cut Application Connectivity CAPEX / OPEX Using Application Session Controllers, says Insight Research White Paper |
| Consumers Adopting Dual Mode Phones for Fixed Mobile Convergence While Enterprises Lag Behind, says Insight Research |
| Peer-to-Peer and File Sharing Services Revenue Will Reach $28 Billion Over Five Years, Says Insight Research Corp. |
| Wireless Backhaul Driving Demand for Private Line Services, Says Insight Research Corporation |
» View All News Channels
» Press Release Services
» Send2Press Home Page
|
|
|
|
|
Subscribe in a reader
PLAIN TEXT FORMAT (UTF-8)
PDF FORMAT
