- Articles - 2012 Blog - S&P500 Earnings Adjusted for Inflation from 1900 to 2012
                Windsurfing at Palo Alto in SF Bay in May 2009
S&P500 Inflation Adjusted Earnings
"Historical Chart of Inflation Adjusted Earnings of S&P500 Index"
                Windsurfing at Coyote Point November 2009

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August 10, 2012:  Currently, the S&P500 is trading at $1,400.18.  If you multiply Q2 earnings (over 84% of S&P 500 corporations have reported), by four to get an annual estimate, then the result is a new all time high for inflation adjusted S&P500 earnings.  At the current level of 1,400, the S&P500 is still 10.5% below its all time high of 1,565.   Chart of Inflation Adjusted Earnings of S&P500 Index

S&P500 chart
From Chartoftheday.com1
With second-quarter earnings largely in the books (over 84% of S&P 500 corporations have reported), today's chart provides some long-term perspective to 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 an inflation-adjusted 1129%) and currently come in at a level that is well above its dot-com bubble peak and fast approaching its credit bubble peak. It is interesting to note that the original run up in real earnings from Great Depression lows to dot-com highs took over 67 years. The current spike has taken 37 months. Also, current Q2 earnings times four would make for a new inflation-adjusted high for S&P 500 corporate earnings. Therefore, as long as earnings do not decline, S&P 500 companies are on pace to make a new all-time record in earnings by Q1 2013 at the latest.

S&P500 Inflation Adjusted                            Earnings

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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