In the long run the relationship between earnings and market price is very correlated. In the short run, price volatility may do anything which can be unnerving. I believe buy and sell decisions are more intelligent when based on earnings rather than price.
Today’s video on TJX Companies, Inc. shows how price is driven by profits.
Best when viewed in full youtube screen.
If the price of a good and healthy business falls, I believe that’s a buy signal. It never pays to sell a stock for less than it’s worth.
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