SP500 Earnings Estimates Over Time - Interesting Chart

[100 Shares]

Found this when searching for SP500 Earnings Per Share. Thought it was worth sharing. I especially like the EPS estimates versus months prior to actual, thought that was very informative and interesting

 

http://www.crestmontresearch.com/docs/Stock-EPS-Trends.pdf

[TwoCitiesCapital]

Thanks for sharing. I enjoy Crestmont's research. I'd like to know more about how they forecast their S&P earnings trend line. Would be interesting to see to determine if I agree with their estimate of earnings.

 

My main concern for this market has become the occurrence of margin compression on top of multiple compression. Margins could compress by 20-25% easily and multiples could also compress 20-25% easily. The two happening in concurrence (a reflexive type movement for you Soros types) would be pretty ugly. I don't know what the trigger will be to set it off, but I think this year has a lot going for it to get the process started.

[scorpioncapital]

They should plot a second line on top of this graph - real interest rates.

 

[TwoCitiesCapital]

They should plot a second line on top of this graph - real interest rates.

 

I've never heard of comparing real interest rates to the absolute level of EPS for equities. What would be the reasoning to do such?