Estimated S&P 500 Earnings Impact Based on Biden’s Proposals Joe Biden’s tax proposal could significantly reduce S&P 500 earnings, if passed into law. Image: BofA US Equity & Quant Strategy
Gap Between S&P 500 Earnings Yield and U.S. Treasury Yield This chart suggests that the S&P 500 looks attractive relative to bonds, as the spread between the S&P 500 earnings yield and the U.S. 10-year Treasury yield is 368bps. Image: Goldman Sachs Global Investment Research
S&P 500 vs. ISM PMI and S&P 500 Earnings Revisions Breadth Chart suggesting that the S&P 500 is simply following the rebound in both PMIs and earnings revisions breadth. Image: Morgan Stanley Research
S&P 500 Earnings Revisions Breadth vs. Dollar Index (DXY) Chart suggesting the good correlation between S&P 500 earnings revisions and the U.S. dollar. Image: Morgan Stanley Research
Equity Risk Premium (ERP) – S&P 500 Earnings Yield Minus 10-Year Treasury Yield Chart suggesting that the S&P 500 looks attractive relative to bonds. Image: SunTrust Private Wealth Management
S&P 500 Earnings Estimates Through 2022 Morgan Stanley expects S&P 500 earnings to fall to $130 this year, before rebounding to $158 in 2021. Image: Morgan Stanley Research
S&P 500 Earnings Revisions Breadth This chart suggests that S&P 500 earnings revisions have likely bottomed. Image: Morgan Stanley Research
S&P 500 Earnings: S&P 500 Peak-to-Trough Profit Decline in a Recession S&P 500 earnings fall about 16% in an average recession. Image: UBS
S&P 500 Earnings Estimate Progression The market doesn’t believe that the long term earnings power has changed and expects a V-shaped earnings recovery. Image: Fidelity Investments
S&P 500 Earnings and Dividend Growth (S&P 500 EPS and DPS) This chart suggests estimates for earnings and dividend growth this year, highlighting the financial crisis and the Great Depression. Image: Goldman Sachs Global Investment Research