Earnings Keep Going Vertical

The report analyzes the 'too perfect' vertical climb of S&P 500 earnings, which have outpaced revenue growth through aggressive margin expansion. The author warns that the chart's engineered appearance may signal peak perfection and a potential contrarian opportunity.

Key Takeaways

• 1.S&P 500 earnings growth is following a near-perfect upward trajectory that resembles engineered charts.
• 2.Profit margins are expanding aggressively, with earnings growth outpacing revenue growth significantly (28% vs 11%).
• 3.Market forecasts for 2026 predict an exceptionally high 20% EPS growth for the US market.

Table of Contents

• Too perfect
• Earnings driving
• 20% EPS growth
• 4-year high
• Not your normal year
• Expanding aggressively again
• Madoff

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