Find Out Why The S&P Is Signalling 2008 Level Event
We have written about this before. The S&P earnings are down about 18% since their peak in 2014. In the meantime, the S&P is up 25%.
Makes no sense?
Here is another perspective.
According to second quarter reports released to the S&P 500 companies records, the earnings decline from second quarter of 2015 to 2016 was -3.2%.
While that drop might seem minimal, according to a FactSet report “The second quarter marks the first time the index has recorded five consecutive quarters of year-over-year declines in earnings since Q3 2008 through Q3 2009.”
That means the financial trends year-over-year are back to 2008 levels. Remember, 2008-2008 was when the U.S (and the world) experienced the worst economic shock since the Great Depression.