Sources of SPX Earnings Growth



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 


S&P 500 Valuation Measures


Long Term Drivers of Economic Growth


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