As readers of my research know, I track actual earnings versus potential earnings of the S&P 500 with the potential earnings being derived from the nominal GDP figures. I put this data into chart form in an attempt to see how likely it is earnings will appreciate or depreciate in the future.
Back in the first quarter of 2015, I began talking about earnings being unsustainably high. Due to this, I moved from an over-weight position regarding equities to an under-weight position.
Now my work shows that earnings appear to be bottoming out. Throughout this report, I will talk about the potential market ramifications of earning’s moves like this and discuss my previous market comments.
Read the full report: Earnings Recession