Displaying items by tag: oversold

(New York)

If that headline seems like a head scratcher, it is meant to be. Barron’s ran a curious article today which argues that weak forecasts for earnings might actually be a good catalyst for higher stock prices. That seems to defy logic, but would be a continuation of a trend that has been in place for a few years. When companies broadcast weak earnings to come, it tends to make investors nervous, leading to oversold conditions. As you might expect, oversold markets tend to lead to bull runs.

FINSUM: This is a tenuous relationship, but when that has been apparent for the last few years. Stocks do like to climb a wall of worry, and this would be a good wall.