Sunday, November 29, 2020

Tag: Stock Market Tsunami Siren Goes Off

Stock Market Tsunami Siren Goes Off

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by Wolf Richter, Wolf Street:
It will be ignored until it’s too late.

Everyone who’s watching the stock market has their own reasons for their endless optimism, their doom-and-gloom visions, their bouts of anxiety that come with trying to sit on the fence until the very last moment, or their blasé attitude that nothing can go wrong because the Fed has their back. But there are some factors that are like a tsunami siren that should send inhabitants scrambling to higher ground.

Since July 2012 – so over the past five years – the trailing 12-month earnings per share of all the companies in the S&P 500 index rose just 12{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in total. Or just over 2{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} per year on average. Or barely at the rate of inflation – nothing more.