Review
On March 6, 2017, we said the following:
“What stands out about the current move upward is the fact that the decline went into negative territory. While the decline wasn’t as low as we’d like, at or below the 1970 level, we have to accept that there are few times this indication went negative without a very strong recovery to the upside. For now, we’re hedging our commentary by watching for the 2013 level before going on to the 1964 peak. However, we suspect that the recovery in S&P earnings could test the 1976 peak.”
The chart below updates the Year-over-Year percentage change in the S&P 500 earnings.
At the time of the posting last year, the charting of the change was slightly above 0% and well below the 2013 level. We’ve highlighted in the red line the reported S&P earnings since 2016 to the most recent reporting. The orange horizontal line traces out the peak of 1964.
