Quite an astounding chart via WSJ Marketblog on Q2 earning expectations of the S&P 500 from Jul 1, 2011 to today. The chart shows the expectation in 3 month increments and what was once a +14% year over year profit growth expectation shrunk to +8% then +4% then +1.7% and now -2.1%. Which of course will be trumpeted anytime a company "beats expectations".
Keep in mind this negative figure includes the massively outsized effect of Apple; last quarter Apple and AIG were essentially the entire S&P 500's growth and this quarter it is expected to be Apple and Bank of America (due to a one off in it's mortgage business). Long story short Apple is the entire growth in the S&P 500 right now and the other 499 companies are combining for little to nothing. Further we have something like 14%ish expected growth in Q4 of 2012… should be slashed significantly by the time we get "there".
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