S&P 500 Median Forward EPS Drawdowns

S&P 500 Median Forward EPS Drawdowns The risk to U.S. equities remains earnings, as an earnings recession is not priced in. Image: Morgan Stanley Research

MSCI EMU 12-Month Forward EPS

MSCI EMU 12-Month Forward EPS Earnings estimates are revised significantly downward during recessions. Image: Gavekal, Macrobond

S&P 500 Performance vs. Forward EPS

S&P 500 Performance vs. Forward EPS The correlation between forward EPS and the S&P 500 performance has been good since May 2020. Image: Deutsche Bank Asset Allocation