Corporate earnings season may be winding down, but the real earnings season—annual 10-K filing season—starts today. Corporate earnings announcements provide investors with limited and often misleading data. Reported Earnings Per Share Don’t MatterHistorical data shows that reported earnings growth has a relatively limited impact on valuation, both for individual companies and the market as a whole. Figure 1: Earnings Growth Vs. P/E Ratio For The S&P 500Cash is a fact. Investors who base their investment decisions on accounting earnings put their portfolios at risk.

Source: Forbes February 22, 2017 22:24 UTC