Earnings in Pictures

From Chart of the Day.com:

"With fourth-quarter earnings largely in the books (over 97% of S&P 500 corporations have reported), today's 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 Q1 2009 low which brought inflation-adjusted earnings to near Great Depression lows. From its Q1 2009 low, S&P 500 earnings surged to a level that approached its credit bubble peak. Since Q4 2011, however, earnings have gone flat and have actually declined over the past two months. In the end, the latest data has inflation-adjusted earnings making new 13-month lows."

Comment:  This flattening of earnings has probably had more to do with the market stalling out this fall than any of the rhetoric about the fiscal cliff.  Markets will likely begin to advance again once the earnings picture clears up.

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

Link:  Chart of the Day: Earnings