3min chapter

What Goes Up cover image

Dissecting the Tech Wreck

What Goes Up

CHAPTER

Is Your Confidence Level in Predicting Market Valuation?

I'm assuming your confidence level in everything was sort of lower than what it would have been, you know, in a non pedemic environment. But my regression models, for example, that try to predict the earning side of the s n p 500 equation versus the multiple side. The earnings model is is roughly two thirds better than the multiple model. So we should be more confident that earnings growth will be at least stable to close to double digit growth over the course of this year.

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