My favorite quarterly guide is out from JPM, and it’s a fun read-through.
The chart up top is a perfect example of a simple data point that can be incredibly instructive when well presented: Sources of Earnings Growth for S&P500 Companies.
Not only did earnings grow a record-setting 70% in 2021, but all sources were positive: Share count (-0.6% versus 0.3% average), Revenue increases (19% versus 3% average), but the vast majority of that growth came from Margin Gains (51.8% versus 2.8% average).
Think back to all of the claims made about markets in 2020 and 2021. Most of these have been proven to be wrong.
I’ll post a few more faves after the jump . . .
Annual returns & Intra-year declines
Long Term Drivers of Economic Growth