EPS Growth This Cycle

EPS Growth This Cycle This chart shows the exceptional earnings growth in the technology sector over this business cycle. Picture source: KKR Global Macro

S&P 500 1-Year Volatility vs. EPS Revisions

S&P 500 1-Year Volatility vs. EPS Revisions This chart from SG shows a good correlation between earning revisions and the S&P 500 1-year volatility. See also “S&P 500 1-Month Volatility History Since 1928 and VIX Since 1990.” Picture source: Societe Generale

Earnings Estimate Progression

Earnings Estimate Progression This chart shows the earnings estimate progression since 2013. For this year, the consensus estimate of EPS growth is currently around 4%. Picture source: Fidelity Investments

S&P 500 Index Price Average Before and After Initial Fed Rate Cut

S&P 500 Index Price Average Before and After Initial Fed Rate Cut Historically, the S&P 500 Index has risen in 13 out of 16 cases after an initial Fed rate cut (since 1954). The divergence between the S&P 500 and EPS suggests that the market doesn’t care too much about other things, as long as…