Market Math Madness: S&P 500 earnings do not compute


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With the 2Q’s earnings season half way through, S&P 500 non-financial companies are expected to see their earnings decline by -0.6% according to The Wall Street Journal.  Earlier the paper had reported that 1st half earnings are up +4.4% over the same period last year.  If earnings are only growing at +4.4% at most (and are in decline), how can you have the market up +20%?  The math is a bit mad.

Mr. Rodgers, CFA, has been managing money since 1988; his blogs and newsletters can be found at

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