- Articles - 2014 Blog - S&P500 Earnings Adjusted for Inflation from 1900 to 2014
                Windsurfing at Palo Alto in SF Bay in May 2009
New Records for the S&P500 and
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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July 2, 2014:  Currently, the S&P500 is trading at $1,975.78, just a few points bellow its all time high.  A key point is  inflation-adjusted earnings are currently higher now than where they were at the peak of the credit bubble in 2007.

S&P500 chart
From Chartoftheday.com1
With earnings season just around the corner, 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 to all-time record highs. To further illustrate the significance of the current corporate earnings recovery, consider that the run-up in real earnings from Great Depression lows to credit bubble peak took over 74 years. The run-up from financial crisis lows to today has been similar in magnitude (actually slightly more) but was accomplished in a mere five years. In the end, S&P 500 earnings are currently at all-time record highs.

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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