S&P and Earnings since 10-1-11

    Posted by sbaxman111 on 26th of May 2016 at 11:07 am

      Michael Lebowitz of 720 Global Research, composed a most interesting note on valuations and earnings yesterday.

    “Since October 1, 2011,  the S&P 500 has risen 82% on the  heels of strong earnings growth.

    Let’s start over.  Since October 1, 2011, the S&P 500 has risen 82%  on the heels of a 0.75% decline in earnings The price to earnings ratio over that time period has risen 83%, with price gains contributing 99% to the increase. Prices have risen substantially, while earnings have actually fallen. The chart below highlights the growing gap between earnings and the S&P 500.”

    720Global-Earnings-1-052616

     

    Great information. Thanks This graph

    Posted by valgata on 26th of May 2016 at 01:13 pm

    Great information. Thanks This graph goes only to 2012 how this kind of action has resolved in longer or other times going back to the last few cycles? Do you have any of that comparison?

    S&P and Earnings since 10-1-11

    Posted by sbaxman111 on 26th of May 2016 at 03:23 pm

    Sorry - this chart is all I have

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