PT  - JOURNAL ARTICLE
AU  - Scott Seibert
TI  - The Bottom Line: <em>Earnings</em>—<em>A Study of S&P 500 Operating Earnings</em>
AID  - 10.3905/jwm.2015.18.3.068
DP  - 2015 Oct 31
TA  - The Journal of Wealth Management
PG  - 68--72
VI  - 18
IP  - 3
4099  - https://pm-research.com/content/18/3/68.short
4100  - https://pm-research.com/content/18/3/68.full
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, “Is it possible to outperform the S&P 500 index using only operating earnings data?” 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