Earnings Revisited

Chart of the Day revisits earnings this week: 

According to Chart of the Day, "One positive for the stock market has been the dramatic rise in earnings since early 2009. For some long-term perspective, today’s chart illustrates inflation-adjusted, as reported S&P 500 earnings since 1900. One period that stands out is the 92% plunge from the Q3 2007 peak to the Q1 2009 low which brought inflation-adjusted earnings to near Great Depression lows. Since its Q1 2009 low, S&P 500 earnings have surged (up over eleven-fold) and are currently fast approaching credit bubble peak levels. It is interesting to note that the only time that inflation-adjusted S&P 500 earnings have been higher than current levels was a relatively brief 18-month period from late 2006 to early 2008."

Assuming S&P 500 earnings come in between $93-95 dollars per share for 2011, then stocks are trading with a mid 13's price to earnings ratio right now and a mid 7% earnings yield.  That strikes me as attractive even with all of the uncertainty out there right now.

Link:  Chart of the Day: Earnings 

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