Opening Statement from the March 2021 Dividend Gems

Opening Statement from the March 2021 Dividend Gems

Originally published on March 14, 2021

Over the past couple of months we have been highlighting the fact that investors have not been rewarding positive earnings surprises nor have they been punishing negative earnings surprises by as much as in previous months (see the Intelligent Investor).

It should also be noted that investors have bought up shares several days/weeks prior to earnings but sold even shares even when a strong earnings beat was reported. Thus, over the past couple of months a strong earnings beat was already factored into stock prices which led to profit taking upon release of earnings. This is an important consideration for...