Rarely are stocks perfectly priced. Rather, the market behaves like a pendulum, constantly swinging between varying degrees of optimism and pessimism. Warren Buffett, protégé of the father of value investing, Ben Graham, maybe said it best: “be greedy when others are fearful and fearful when others are greedy.” But, in the moment, it can be difficult to tell if the exuberance or dispair around us is rational and justified or not. The S&P 500 (the largest 500 companies in the US) has gained 7% already this year after advancing 26% in 2023. Are these gains being driven by “irrational exuberance” or are they supported by fundamental economic and business growth? This month, we will dive into 2023 company earnings.