The above chart shows the graph of the S&P 500 (blue line) and earnings per share (red line). (Click on the chart to enlarge it).
Earnings per share are the lifeblood of the stock market. Stocks rise when earnings per share rise. The market gets into trouble when earnings per share start declining.
Barron's reported earnings per share declined in the past two weeks. Also, profits declined in Q4 according to the Bureau of Economic Analysis.
The point? These are important headwinds for stocks. If they do not change direction, the market may be in real trouble.
Stay tuned.
More details in The Peter Dag Portfolio on www.peterdag.com
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull and Bear Markets
No. 1 bond timer in the past 12 months.
Disclaimer. The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
STRATEGIC INVESTING FOR UNCERTAIN TIMES.
Learn how to manage your portfolio risk and sleep comfortably. Improve the certainty of returns by taking advantage of business cycle trends. Learn to use simple hedging strategies to minimize the volatility of your portfolio and protect it from downside losses.
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Disclaimer. The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
STRATEGIC INVESTING FOR UNCERTAIN TIMES.
Learn how to manage your portfolio risk and sleep comfortably. Improve the certainty of returns by taking advantage of business cycle trends. Learn to use simple hedging strategies to minimize the volatility of your portfolio and protect it from downside losses.
Keep updated on crucial economic and financial trends including exclusive model portfolios by subscribing to The Peter Dag Portfolio. Just visit www.peterdag.com
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