In response to:

Dividends and Stock Prices: Don't Say We Didn't Warn You

Hawker 1 Wrote: Feb 12, 2013 8:37 AM
Read the entire article and now know no more than before I read it. Every hear of the KISS system . Please keep it simple . Just state your prediction . Will the market go up or down by 2Q of 2013?
Raven1958 Wrote: Feb 12, 2013 11:30 AM
This is a part of the context at the bottom of the articla. "Once investors shift their gaze to a more distant future quarter however, we can expect stock prices to fall sharply, as the expected change in the growth rate of trailing year dividends per share for 2013-Q3 and 2013-Q4 are both deeply negative."

We're returning to the cutting edge of the physics that describes how stock prices behave today, as we look backwards and forwards in time to sort out why the U.S. stock market is behaving as it is.

First, let's cover what's going on with the fundamental driver of stock prices: their underlying dividends per share. Our first chart shows what the dividend futures contracts reported by IndexArb indicate that investors are currently expecting to be paid out by S&P 500 companies in 2013: