US reporting season is approaching and this chart provides a back drop on the journey of corporate earnings
US reporting season is approaching and this chart provides a back drop on the journey of corporate earnings. The chart illustrates how earnings declined over 92% from their Q3 2007 peak to Q1 2009 low bringing inflation-adjusted earnings to near Great Depression lows. Since its Q1 2009 low, S&P 500 earnings have surged to all-time record highs. The run-up in real earnings from Great Depression lows to credit bubble peak took over 74 years. The run-up from financial crisis lows to today has been similar in magnitude (actually slightly more) but was accomplished in a mere five years - currently leaving them at record highs. (Chart via Chart of the Day)
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