This new year has brought about some new twists. I don't know whether it is for the better or worse, but surely it has complicated things. Valuing stocks that change direction of earnings are difficult. The change in direction, makes relying on past data quite insignificant and difficult to predict the future earnings. Whether this inflection point is a blip in the long term trend or a part of a cyclical process or a permanent change in direction is very difficult to tell. Only time will tell what it actually was.