Earnings: Current Consensus.

We put out a preliminary earnings forecast for 2013 yesterday, using a midpoint earnings range of $108 on the S&P 500 for 2013.  Dr. Ed Yardeni notes over at his blog last week that the consensus operating earnings estimates for 2013 and 2014 are $112.98 and $125.91respectively.  I think these numbers are way too high but if they are anywhere close to being correct and the market's PE is stuck permanently at 14 then stocks would be worth $1,582 in 2013 and  $1,763 by the end of 2014.  

Again I think both of these numbers are going to come down a lot in the next few months.  Markets don't like earnings revisions lower so that could be an excuse for a breather in the current rally.  But it does show that valuations are perhaps not as stretched as some assume.