S&P 500 Index vs. U.S. Corporate Profits After Tax Index Do valuations still matter? This chart puts into perspective the wide divergence between the S&P 500 and U.S. corporate profits after tax. Image: Morgan Stanley Research
S&P 500 vs. Profit Margins Do valuations still matter? The current divergence between the S&P 500 and profit margins is huge. Image: Crescat Capital LLC
Corporate Profits After Tax vs. S&P 500 Do valuations still matter? The current divergence between the S&P 500 and corporate profits after tax is the widest on record. Image: Real Investment Advice
Average Performance by S&P 500 Quality Ranks when the Profits Cycle Decelerated Historically, high quality stocks (A+) have outperformed when the profits cycle decelerates, as investors tend to pay up for stable earnings growth. Image: BofA US Equity and Quant Strategy
Global Corporate Profits, Level and Cumulative Loses J.P. Morgan expects global corporate profits to fall by about 70% in the first half of 2020. Image: J.P. Morgan
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 vs. Corporate Profits After Tax The current divergence between the S&P 500 and corporate profits after tax is the widest on record. It is possible to close the gap “down” with a recession. Image: Real Investment Advice
Global Profit Cycle – South Korea Exports and Global EPS Chart showing the correlation between South Korea exports and global EPS. Image: BofA Global Investment Strategy
U.S. Corporate Profits and 10Y-3M Yield Curve While the divergence between large-cap profits and the rest of the economy is the widest on record, the steepening yield curve suggests an earnings rebound. Image: BofA Global Research
U.S. Corporate Profits vs. Assets U.S. corporate profits are near 20-year lows relative to fixed assets. The alternative to a recovery in corporate profits is the increasing risk of recession. Image: BofA Global Research