Why The Market Went Down So Much: Earnings

Chart of the Day chronicles last year's earnings decline.

"With a large majority of third-quarter earnings in the books (87% of S&P 500 companies have reported for Q3 2009), {this} chart provides some long-term perspective to the current earnings environment by focusing on 12-month, as reported S&P 500 earnings. Today's chart illustrates how earnings declined over 92% from its Q3 2007 peak to its Q3 2009 trough, which makes it easily the largest decline on record (the data goes back to 1936). On the positive side, S&P 500 earnings bottomed and are moving up sharply."

*Long ETFs related to the S&P 500 in client and personal accounts.

Link: https://www.chartoftheday.com/orderform.htm (subscription required).