Quarterly Earnings and the US-Stock Market
(Q1-2009 - Q1-2016)
S&P 500 is trading around 2,100. It has traded at that level numerous times in the last 20 months. During that time actual quarterly earnings for the S&P 500 have plunged from its high (USD 29.6 in Q3/2014) quarter by quarter.
Graph created by Ralph Gollner
Tyler Durden on "zerohedge" called 'earnings" the milk of markets. In March 2016 he said: "It appears the mother's milk of markets is rapidly drying up." But now I would say that this was 'just' an earnings-recession which we had to digest. Now is the time to look forward and believe (or hope...) that quarterly earnings have found its floor at ca. USD 25 and will keep on rising from this level forward.
link to a zerohedge-article in March 2016: http://www.zerohedge.com