Further reading: Beware of the earnings mirage

Further reading: Beware of the earnings mirage

Over the course of its history, the S&P 500 has overstated its earnings by an average of 25 per cent. That’s according to The Earnings Mirage: Why Corporate Profits are Overstated and What It Means for Investors, a recent research paper produced by O’Shaughnessy Asset Management (OSAM). Written by pseudonymous author Jesse Livermore, the study contends that company earnings are systematically overstated, consistently failing to reflect reality.

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