Excellent quote from Graham: Just looking back through old Montier letters (from GMO), and this quote from Graham caught my attention: 'The market level of...

Excellent quote from Graham: Just looking back through old Montier letters (from GMO), and this quote from Graham caught my attention: 'The market level of common stocks is governed more by their current earnings than by their long-term average. This fact accounts in good part for the wide fluctuations in common-stock prices, which largely (though by no means invariably) parallel the changes in their earnings between good years and bad. Obviously the stock market is quite irrational in thus varying its valuation of a company proportionately with the temporary changes in its reported profits.' I wonder how many share price overreactions wie'll see during reporting season? (VIEW LINK)