Excess relative outperformance can be achieved by forecasting stocks experiencing momentum in earnings but which will surprise resulting in "consensus forecast errors" whether long or short positions are taken

This paper gives an overview of some issues related to market valuation, focusing on the developments on the New York equity markets. The 42.4 p.c. fall in the S&P 500 price index between 24 March 2000 - when it reached its all-time high - and 31 December 2002 is situated in a very long term...