Mohacsy's Safe Portfolio Member Forum

[elena_murooni]

No Sir!! This is 'as reported' earnings!

"Today's chart illustrates that 12-month, as-reported S&P 500 earnings have declined over 90% over the past 20 months (with over 90% of S&P 500 companies having reported for Q1 2009), making this by far the largest decline on record ... "

When the media/mkt/govt is luring the investor to 'buy', it would be nice if the 'buy' price was right. Most investors buy because stocks look cheap when, in fact, they are expensive.

This chart is equivalent, IMHO, as the grocer luring you to buy a loaf of bread for $7 a loaf. (It's clearer with this example, no?) !!

But, you have a point... forward projected earnings would yield a different graph. Trouble is..... forward earnings are best guess/hope... and they can be revised down shortly before reporting.