Earnings Equals Growth

Anyone seeking to understand the S&P 500 Index’s performance in the decade-long bull market ought to focus on earnings. Comparing the S&P 500’s profit growth on a per-share basis with its value since mid-2009. Earnings climbed 203% as the index rose 232%.


Expecting the S&P 500 Index to build on Monday’s 0.8% advance through the rest of this quarter may be wishful thinking, based on history. The index had its worst performance in the third quarter between 1980 and 2018. Gains in the third quarter averaged 0.3%, far below the comparable figures of 2.6% for the first … Continue reading Earnings