Peter Lynch on earnings…

“Earnings don't move the overall market; it's the Federal Reserve Board, focus on the central banks, and focus on the movement of liquidity, most people in the market are looking for earnings and conventional measures. It's liquidity that moves markets.” Stanley Druckenmiller 🔥

it's not one or the other...it's a combination of both. the latter is a more recent phenomenon (pre-Lynch) anyone who looks at single securities would say otherwise. Druck himself focuses on potential earnings growth, hence his investment in $NVDA in a rising rate cycle...

Things that matter in a world with single digit CAPE ratio and sub 1 price/sales ratio are not the same things that matter in a world with a CAPE ratio in the 30s and a price/sales ratio pushing 3. We live in a much different world than the one that made Peter Lynch famous.

It's different and flows matter a lot, but the principles are the same. We have found several cheap midcaps this year that have outperformed

He’s an obviously a genius and knows way more than me. !but sofi stock has great earnings, but hasn’t gone up in 2-3 years. But it will once interest rates drop….

But it doesn't have great earnings...what is EPS

watch this short video, how true and applicable today…. @JoeCarlasare @PayItForwardDad @americanhodl8 @verysmallclaims @BitcoinTina @SantiagoAuFund @CiovaccoCapital

@tomcasanegra

Lynch emphasizes the importance of earnings growth for stock valuation. Solid fundamentals matter! 📈💼

All of those circumstances don’t matter until all of a sudden they do. Then I can listen to all of the pundits on CNBC tell me that such and such metric was elevated and that any monkey could have told you that would have been influential and of course your stocks just dumped.