S&P 500 & Corp. Profits

Putting on our conventional analysis hats (admittedly, not a hat I wear all too often) we see that the S&P 500 has happily continued higher despite a moderation in corporate profits.

Courtesy of SlopeCharts

This creates a value issue in the S&P 500 at precisely the same time that the potential for interest rates to rise further creates an equity risk premium issue as long-term Treasury bonds compete for investment dollars in a tame inflation environment.


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