Disappearing Stock-Market Earnings

Slide of the Day comes from John Mauldin, via Paul Kedrosky: he shows how estimates for the S&P 500’s 2009 earnings have come down from $81.52 in March to just $48.52 now. That’s a drop of 40% in seven months.

Here’s a list of S&P 500 earnings since 1960; the last time they were below $50 was 2002. So it’s probably perfetly reasonable that stock prices are back down to their 2002 levels as well.

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