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Old 12-02-2007, 08:13 PM
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S&P 500 Earnings vs GDP

Reported GDP by the government was a healthy +4.9% last quarter. Meanwhile, S&P 500 forward earnings estimates have been in freefall lately. Note the stability all year long until late August, when estimates began to trend down. The market made a new high while estimates began to fall and then the bottom came out of estimates in November.

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