All killer no filler

As the S&P 500 hits new highs almost daily, the earnings growth hasn’t been there. In fact, the trailing 12-month earnings of the index has seen year-over-year declines in the past 19 months.

Over the trailing five-year period, earnings peaked in the third quarter of 2014 before steadily declining. Earnings in the energy sector declined 91% over the period, while the financial sector saw earnings grow 92%. As expected, the utilities sector saw a modest 6% increase and very low volatility in its earnings.

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