Friday, 21 August 2015

S&P 500 goes negative YoY: special comment

The S&P 500 closed negative YoY today (Friday), the first time that has happened since 2012:
 
 
That stocks are correcting really shouldn't be a surprise.  I have pointed out repeatedly that, since corporate profits are a long leading economic indicator, and stock prices a short leading indicator, by implication corporate profits lead rather than lag stocks (measuring stocks by their quarterly average).


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