17 May 2009

Chart of the day

The magnitude of the decline of the 12-month, as-reported S&P 500 earnings is unprecedented (the data goes back to 1936) with 90% over the past 20 months (with over 90% of S&P 500 companies having reported for Q1 2009).

Real earnings have dropped to a record low and if current estimates hold, Q3 2009 will see the first 12-month period during which S&P 500 earnings are negative.