Company earnings decide stock returns

View Article

For current investors, the reality is that what actually happens will depend, as in the past, on corporate earnings writes MBS Associate Professor Mark Crosby. On Wednesday, the Dow Jones Industrial Average rose above 10,000, though the Dow and the S&P are still below 1999 peaks. Market expert Warren Buffet once predicted that the S&P 500 would rise to 2900 by 2016, but that would require more than 14 percent growth between now and then. In Australia, the news is far more positive, with the S&P/ASX 200 delivering healthy returns for long term investors.