April 30, 2015

Will the 2015 stock market look just like 2014? What Earnings Call Forensics™say about profits, growth, and returns.


  • Earnings Call Forensics™ provide proprietary management sentiment signalsthat strongly suggest continued earnings improvement through efficiencies and cost-cutting, thereby supporting a sustained Return On Assets that are at 60-year high levels.
  • These signals also imply a strong reluctance by management teams for growth initiatives of virtually any kind. We will see abysmally low business re-investment rates, fewer capital expenditures, and low asset growth in general. Cash will go to share buybacks yet again.
  • Combined, these support market returns in the 10% to 20% range simply on stable earnings
To read this Litman Letter in its entirety, please enter your name and email address below. We will send you the report and keep you apprised on future Litman Letters.