RT Journal Article
SR Electronic
T1 The Bottom Line: EarningsβA Study of S&P 500 Operating Earnings
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 68
OP 72
DO 10.3905/jwm.2015.18.3.068
VO 18
IS 3
A1 Scott Seibert
YR 2015
UL https://pm-research.com/content/18/3/68.abstract
AB This study examines the historical relationship between the S&P 500 operating earnings and the price of the S&P 500 index (SPX). We will answer the question, βIs it possible to outperform the S&P 500 index using only operating earnings data?β A portfolio that simulates the S&P 500 return, including dividends, is compared to 30 different custom portfolios that alter their asset allocation strategy based entirely on the rate of change in the operating earnings of the S&P 500. The results of the study conclude that 29 out of 30 custom portfolios, making buy/sell decisions using only operating earnings data, generated excess return over the S&P 500 buy and hold portfolio.TOPICS: Mutual funds/passive investing/indexing, fundamental equity analysis, simulations, performance measurement