Here's what happened the last 5 times real earnings + dividend yield was under 3 pts: double recessions in'73-'74 and '80-'82, the market crash of '87, the popping of the 2000 tech Bubble and lastly, the GFC of 2008. Good times ahead! h/t @sentimentrader pic.twitter.com/m4dWyhEnJ2
— Cory Venable CMT (@CoryLVenable) May 27, 2021
— Dave Loves Carnage (@dapstats) May 26, 2021
Corporate profits have already stagnated.
After taxes and after inflation, corporate profits are at the same level as Q4 2011.
There has been zero real profit growth for the aggregate economy in 9 years.
This long-term trend ties into persistently weak investment & growth. pic.twitter.com/XsRCmW6twI
— Eric Basmajian (@EPBResearch) May 27, 2021
Cathie's Casino ™ had some interesting trades yesterday, I have not even heard of most of these pic.twitter.com/ifMz9VFNKR
— 𝕮𝖍𝖎 (@chigrl) May 27, 2021
Important strength in Growth Stocks:
One third of Nasdaq Stocks have triggered Buy signals – the most since March 2020.
Most spikes of this magnitude led to bottoms or *big* rally extensions.
A textbook Bull Market response after a sentiment capitulation – follow the Trend. pic.twitter.com/Zg8mjCojaP
— Macro Charts (@MacroCharts) May 27, 2021
— Eric Balchunas (@EricBalchunas) May 27, 2021
— Sven Henrich (@NorthmanTrader) May 27, 2021
Even using Forward EPS Estimates, Real Earnings Yields are at record lows pic.twitter.com/qx295NKua7
— Not Jim Cramer (@Not_Jim_Cramer) May 27, 2021