S&P 500 Average Negative Sentiment Score YoY vs. Quarterly EPS YoY (Leading Indicator) Could slowing earnings growth lead to lower equity returns? Image: BofA Global Research
S&P 500 Total Return Decomposition Goldman Sachs expects S&P 500 returns to be moderate in 2022 and beyond, driven primarily by earnings growth. Image: Goldman Sachs Global Investment Research
S&P 500 – 2021E Sales and Profits Relative to 2019 Levels Will earnings growth drive the S&P 500 higher by the end of 2021? Image: Goldman Sachs Global Investment Research
S&P 500 Total Return Attribution Multiple expansion explains the S&P 500’s total return YTD, despite negative earnings growth. Image: The Daily Shot
S&P 500 Index Total Return Drivers Historically, earnings growth drives equity returns over time. Image: Morgan Stanley Research
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 PMIs Global PMIs and earnings growth across regions could suggest a strong risk-on year. Image: Fidelity Investments
S&P 500 EPS Forecast Despite the earnings squeeze, Goldman Sachs is still positive on the S&P 500 earnings outlook. In 2020, U.S. and global growth should rebound modestly. Image: Goldman Sachs Global Investment Research