The Striking Price | SATURDAY, JULY 14, 2012How to Win in Earnings SeasonBy STEVEN M. SEARS
Goldman Sachs study shows that the weeks before quarterly results are unusually important to a stocks annual returns.ArticleCommentsEmailPrintReprints smallerLargerIt is now much in vogue to observe that stock-market correlation is high.With all stocks seemingly rising and falling as one, with little regard for their individual merits, the fashionable trade is to ignore stocks.The better approach, says the new conventional wisdom, is using exchange-traded funds and associated call options to profit from the rapid risk-on, risk-off trading patterns that now define the stock market. To take a stand on the fundamental merits of a stock is seemingly ill-advised.But a recent Goldman Sachs study suggests investors should stop worrying so much about correlation, at least during earnings season.
via Anxious Trading in Earnings Season Creates Big Opportunities – Barrons.com.