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You may have seen or heard an Old Wall media pundit boldly proclaim that earnings are “good” this quarter. That is useless information without context. Hedgeye CEO Keith McCullough explains why in the above clip.

Where earnings are coming from relative to previous quarters is what investors should really keep an eye on. Yes, S&P 500 earnings are up roughly 13% for the fourth quarter of 2018, but that number has been slashed in half from the 26% growth earnings saw in the third quarter.

“Even if earnings went to 25 [percent] I would call that slowing,” McCullough explains on The Macro Show.

“Expectations do matter. But getting the broader moves on the earnings cycle is far more important because you’re not justifying your losses with ‘earnings were better.’”

Watch the full clip above for more.

McCullough: Don't Forget That Earnings Are Relative - the macro show