HIBL - S&P 500 Earnings: S&P 500 Earnings Yield Hits High Not Seen Since January 2019

Summary

• The S&P 500 earnings yield is now 6.5%, a 2022 high, surpassing the peak of 6.42% the week of June 17th, 2022, and one of the highest earnings yields seen since January ’19.
• 2022 has been all about “P/E compression” as the S&P 500 P/E started at around 20x the FFQE, while today, it’s 15x the FFQE with some slight degradation in the forward estimate.
• The S&P 500 “earnings yield” actually hit a 2022 high this week, which means that the S&P 500 has been declining faster than the S&P 500 forward estimate itself.

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