CHART OF THE DAY: Lofty S&P 500 Expectations

Back to the top-down view of the US Profit Cycle, as you can see in The Chart of The Day (where we highlight the “tough comps”, or comparative growth rates from last year, in yellow):

A) Q1 of 2017 (last year) saw aggregate year-over-year EPS growth for the SP500 #accelerate to +14.6% from +6.4% in Q416
B) Q1 of 2017 saw Tech EPS growth decimate “valuation” bears accelerating to +21.7% from +12.0% in Q416
C) The rest of our growth and profits accelerating call throughout 2017 is history #timestamped 

But it ain’t over ‘till it’s over. Again, as you can see in that same chart of SALES and EPS growth data, if the SP500 and Tech were to hold these Q1 2018 to-date growth rates, US stocks can indeed go a lot higher. If they don’t, they can go a lot lower too! 

“So”… we will remain in touch with our mama’s on this and update you throughout EPS Season. She taught us to be data dependent.