Midyear 2015 update: corporate profits as a leading indicator for stocks
- by New Deal democrat
Here's a graph of the YoY% change in the S&P 500:
Needless to say, it has decelerated markedly.
Corporate profits, a long leading indicator, tend to turn before stock prices, a short leading indicator. Which means that corporate profits should lead stock prices. My midyear 2015 update of that relatioinship is up at XE.com.