Talking points: corporate earnings

Buying equities based on hope - for example, the hope of a giant Fed intervention, which pushed up markets last week - is rarely a sound investment strategy.

Rather, common sense suggests we should buy stocks based on fundamentals - specifically, their price relative to their outlook for earnings and growth. In periods of weak economic growth and elevated prices, who in their right mind - the logic goes - would buy equities knowing that profit growth was falling?

via Business feed http://www.scmp.com/business/money/markets-investing/article/1036843/talking-points-corporate-earnings