We joined Yahoo Finance’s The Ticker on Friday, November 22 to provide insights into earnings distortion, market inefficiencies, how using consensus earnings estimates could be costing you money, and Tesla’s latest product announcement.

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Core earnings, when adjusted for unusual gains/losses hidden in footnotes, are a lot worse than investors and markets realize. Meanwhile, the S&P 500 has been on a tear this year, up nearly 25% and currently at an all-time high.

How do stocks rise when the underlying fundamentals fall?

Answer: most investors are not aware of the more severe decline in core earnings.

Use our Earnings Distortion Scorecard to protect your portfolio.

This article originally published on November 22, 2019.

Disclosure: David Trainer, Sam McBride, and Kyle Guske II receive no compensation to write about any specific stock, sector, style, or theme.

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