Earnings Growth PeaksSubmitted by Majerko Investment Management LLC on August 31st, 2018
So far this year, earnings growth for the S&P 500 has been quite outstanding. We are looking at 20% + at least, for the first half of the year. It would be nice if this type of growth could continue infinitum. However, intellectually we know, that type of growth cannot continue forever. It is quite possible that we could be nearing peak earnings growth but not necessarily peak earnings. I came across the chart below, and it shows some interesting analysis. Even if we are at peak earnings growth, the potential for the economy as well as stock prices to continue to grow, is quite good. This would suggest to me, that there may be many good years ahead for the stock market.
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