Long Term Earnings Charts

Below are a couple of charts showing the earnings situations long term.  Using data that goes back to 1989, which is the max with the Standard and Poors Data.

  • First chart shows the Operating Earnings trend with an overlay of the S&P 500 performance during the same time period.

opEarnings-vs-SPNext chart on full post….

  • The second chart shows the P/E ratios using both “Operating Earnings” and “As Reported Earnings”. (for some information on the difference in the earnings go to a previous post here)

p-eHistory4

As you can see we are in unusual times to say the least.  The As Reported Earnings P/E is out of the stratosphere due to the large negative Q1 numbers.

What thoughts come to mind when looking at these charts?

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5 Responses to “Long Term Earnings Charts”

  1. There are a lot of different things to see from these charts and we wanted to keep it open on our opinions so as not to persuade either way.

  2. What I find interesting is how the previous spike in As Reported P/E ratio preceeded a large rally

    • Yeah I know… Im not sure how much to read into that. If the rally is proportional to the size of the P/E spike we are talking some serious upside!! ha

      I wish standard and poors had more historical data so as to look back to other bear markets like 73 or the great depression time frame… but they didn’t even exist yet.

    • I think there is a common human tendency to psaogolchicylly defend oneself against death by projecting the problem onto the entire world. So the religious believe they are living in the end times and the secular that our species is headed for self inflicted extinction. One ends in Hellfire the other in steaming green muck – both seem to involve heat. Perhaps there is a connection?

    • hola MARISOL tengo dias que no recibo ningun paso a paso quisiera saber si me vas a seguir mandando no sabes con que ansias abro mi correo todos los dias muchisimas gracias y espero noticias pronto saludos con mucho cariño

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