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 www.goldleafcapital.com