Thursday, July 9, 2015

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