What does the author mean by gains may be priced in

Reference no: EM131304498

An article in the Wall Street Journal makes the following observations: The outlook for companies: robust earnings and revenue growth. Firms in the S&P 500 are expected to report year-over-year earnings growth of about 37%, well above the 7%-8% historical average. . . . It should all be good news for stocks-except the gains may be priced in. What does the author mean by "gains may be priced in"? If the gains are priced in and you bought stocks on the basis of the information contained in this article, would you be likely to earn above-average returns on your investment?

Reference no: EM131304498

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