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                Windsurfing at Palo Alto in SF Bay in May 2009
S&P500 Inflation Adjusted Earnings
" Historical Chart "
                Windsurfing at Coyote Point November 2009

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December 9, 2011: 

With third-quarter earnings largely in the books (99% of S&P 500 companies have reported for Q3 2011), today's chart provides some long-term perspective on the current earnings environment by focusing on 12-month, as reported S&P 500 earnings. Today's chart illustrates how earnings declined over 92% from its Q3 2007 peak to Q1 2009 low which brought inflation-adjusted earnings to near Great Depression lows. Since its Q1 2009 low, S&P 500 earnings have surged (up over 1100%) and currently come in at a level that is greater than what occurred at the peak of the dot-com bubble and very near what occurred at the peak of the credit bubble. It is interesting to note that the original run up in real earnings from Great Depression lows to credit bubble highs took over 78 years. The current spike has taken 29 months.

Note 1.  Source: Chart of the Day  "Journalists and bloggers may post the above free Chart of the Day on their website as long as the chart is unedited and full credit is given with a live link to Chart of the Day at"
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