Equity Risk Premium

Equity Risk Premium The equity risk premium (earnings yield less bond yield) stands at 4.48% (the 90th percentile since 1985). It suggests that equities are cheap relative to bonds. Image: Fidelity Investments

S&P 500 EPS vs. U.S. Nonfinancial Corporate Profits

S&P 500 EPS vs. U.S. Nonfinancial Corporate Profits Creative accounting is imaginative ways to present accounts. The divergences between earnings and U.S. nonfinancial corporate profits occur before recessions. Image: Gavekal, Macrobond

Stock Market Capitalization as a Percentage of Nominal GDP

Stock Market Capitalization as a Percentage of Nominal GDP This ratio is useful in determining whether the U.S. stock market is undervalued or overvalued relative to its historical average. The current reading is pretty high at 149.15%. You may also like the “Stock Market Valuation” and “S&P 500 Index – Earnings & Valuation.” Image: Bianco Research

South Korean Exports vs. S&P 500 EPS Estimates

South Korean Exports vs. S&P 500 EPS Estimates The correlation between South Korean exports and S&P 500 EPS estimates suggests a weakness in S&P 500 earnings estimates. Image: Lohman Econometrics

World Semiconductor Sales and S&P 500 EPS

World Semiconductor Sales and S&P 500 EPS Tight relationship between world semiconductor sales and S&P 500 earnings per share. You may also like “Semiconductor Sales vs. Global Earnings per Share.” Image: Oxford Economics

EPS Growth This Cycle

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