Hosts Joe Weisenthal and Tracy Alloway speak with Rafe Resendes, a portfolio manager and co-founder of the Applied Finance Group, who argues for another way of reconceptualizing value, beyond just cheapness, in a way that works across market environments.
Those latest earnings forecast, are implying an economic soft-landing, not an outright severe recession. Historically, the SP500 EPS change during a recession was a decline in the high teens. That said, with the SP500 losing nearly a quarter of its value YTD, investors clearly have embraced less robust prospective earnings than what the consensus estimate is suggesting. […more]