Earnings: A Follow-up To Yesterday

As a follow-up to yesterday's post the folks over at Chart of the Day show in the chart above the earnings projection for year end 2012 S&P 500 earnings.  Note how quickly profits recovered from their cyclical lows in 2008-09.    Here's their take on this:

"Today's chart provides some further perspective into the past and future trends of 12-month, as-reported, inflation-adjusted S&P 500 earnings. Today's chart illustrates how earnings declined over 92% from its Q3 2007 pre-financial crisis peak and then, beginning in Q1 2009, quickly surged back to near record levels. This begs the question; will corporate earnings make new record highs? As today's chart illustrates, based on the latest S&P 500 earnings estimates (see red line), earnings are expected to make new, inflation-adjusted record highs during the first half of this year. Considering the current global economic environment, this is indeed quite an achievement."

Link:  Chart of the Day: Earnings

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