clipped from www.tradersnarrative.com
earnings collapse long term chart

While this is alarming, keep in mind that the market looks ahead while earnings are in the rear-view mirror. I tried to confirm the above chart by using Prof. Shiller’s data but the latest earnings data he shows is for December 2008. Using that as a starting point and going back 20 months, earnings are down 82% – which would lend credence to the 90% collapse.

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