Apologies for the delay in getting this out this week.<\/p>\n
The forward 4-quarter estimate for the SP 500 fell slightly for the week ended 8\/15\/14 to $126.58, from the prior week’s $126.78.<\/p>\n
The p.e ratio on the forward estimate is now 15.45(x). The PEG ratio is 1.64(x).<\/p>\n
The “earnings yield” on the SP 500 as of Friday’s close was 6.47%.<\/p>\n
The year-over-year (y\/y) growth rate on the forward estimate fell to 9.40% from the prior week’s 9.53%. Still healthy and closing in on 10%, which is where I would expect we will end 2014.<\/p>\n
Analysis \/ commentary: For q2 ’14, the y\/y earnings growth for the SP 500 is officially over 10% to 10.1% (if Citigroup’s numbers are excluded), per Thomson Reuter’s This Week in Earnings. The growth rate of the forward estimate is now also closing in on 10% which means consensus analyst expectations are getting more optimistic, despite what is a subdued growth rate of high single digits.<\/p>\n
Q2 ’14 earnings season officially ended with Wal-Mart’s (WMT) report this past week. 466 of the SP 500 have now reported q2 ’14 earnings.<\/p>\n
Because of the delay in getting this out to readers this weekend, we will keep the summary short and sweet.<\/p>\n
Although we waffled on the forecast, we thought SP 500 earnings growth could hit 10% in 2014, and with p\/e expansion t0 2(x) that growth rate or 20(x) earnings, the SP 500 could still have\u00a0a decent year.<\/p>\n
We are expecting a strong q4 ’14 both for SP 500\u00a0earnings and for the return on the SP 500.<\/p>\n
Watch the July ’14 high for the SP 500 of 1,991. A heavier volume trade above 1,991 and our q4 ’14 rally could have started early this year.<\/p>\n
Trinity Asset Management, Inc. by:<\/p>\n
Brian Gilmartin, CFA<\/p>\n
Portfolio manager<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Apologies for the delay in getting this out this week. The forward 4-quarter estimate for the SP 500 fell slightly…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[92,91,4],"tags":[],"class_list":["post-4008","post","type-post","status-publish","format-standard","hentry","category-fwd-4-qtr-growth-rate-sp-500","category-weekly-earnings-update","category-wmt"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/4008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4008"}],"version-history":[{"count":4,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/4008\/revisions"}],"predecessor-version":[{"id":4012,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/4008\/revisions\/4012"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}