Expectations Investing: Reading Stock Prices for Better Returns Alfred Rappaport, Michael J. Mauboussin
Publisher: Harvard Business Review Press

But as the " The sooner we come to grips with this excessive level of assets on the balance sheet of the Federal Reserve -- that everybody agrees is excessive -- the better," former Fed chairman Alan Greenspan told CNBC Friday. This table is a big clue that earnings are not living up to expectations, and a bigger reason I decided to dive deeper into the earnings analysis. Expectations were running high from both investors and consumers heading into today's annual Apple (AAPL) Worldwide Developers Conference, but as we have g. Disclosure: No relevant positions. Apple's share price has dipped following the company's annual World Wide Developers Conference keynote for four consecutive years, as investors had their perhaps overly exuberant expectations for the event recalibrated. But very few executives or investors do. I will take a In my article "Which Market is Correct" I showed the details of the last five quarters and the recent growth in stock prices (NYSEARCA:IWM) in the face of stagnant earnings. Fundamentals, technicals, sentiment, and most importantly, common sense, should all be involved in the investment decision. From a technical standpoint, AAPL should have violated upper level stops on short-term long trading positions when it traded below $444-446. The day after the company's WWDC 2009 keynote, the In other words, investor expectations and Apple's WWDC plans may — may — actually be better aligned than they have been in some time. Lower rates have helped ease consumers' debt burden; cheap mortgages have spurred home buying and helped drive up prices; and low rates on bonds have prompted investors to move cash into stocks, pushing prices higher. Pandora (P) share prices actually rose $0.35 on the day despite the potential new competition.