Rallying in the Face of Lower Earnings

Here’s a fact which may surprise a lot of people: According to S&P, Q2 earnings were an all-time record. Earnings for the S&P 500 came in at $25.42 which just narrowly edged out last year’s Q3 total of $25.29.

Analysts currently expect earnings of $25.01 for this year’s Q3, and $27.01 for Q4. That would bring full-year 2012 earnings to $101.68. That forecast has dropped significantly over the past year.

(Chart from S&P.)

I think it’s interesting that stocks have risen while the earnings outlook has dimmed.

Posted by on September 1st, 2012 at 11:54 am


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