US economy turning?

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Sat Jan 5 09:51:30 PST 2002


Christian Gregory asks:


>> Doug Henwood wrote:
>>
>> Stocks are priced for a recovery in profitability
>
> By the way, what is the formula for figuring how how the price of a
> stock predicts or anticipates profits--I mean, in real number terms?
> How is the price or market capitalization related to earnings
> expectations?

They aren't; Doug was being sly along the lines of "If you thought it was great at $100, you'll LOVE IT at $40" . . .

More seriously, his sentiment is captured only in a hindsight way and not in any predictive way. If he had such a formula, he wouldn't share it here :-)

/jordan



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