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Stocks Are Surging Again. Why This Rally Could Last Into Spring.

Por: MarketWatch Business March 04, 2023

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We aren’t ignoring potential six-month 10%-15% rallies. Some say Equity Risk Premium is low (in a “death zone”), but incorrectly compare earnings yield (a real yield) to nominal Treasuries, and suboptimally use forward earnings yield (earnings per share/price, price/earnings ratio upside down) instead of the superior cyclically adjusted P/E ratio (we use operating EPS to calculate CAPE earnings yield). On Oct. 24, 2022 (S&P 500 close... + full article



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