Elga explains what our new tracker of developed market earnings is telling us, and why our view on earnings is gloomier than the markets.
We have created a new tool for tracking developed market ((DM)) earnings. Our new earnings tracker leverages our existing suite of macro indicators, including our Growth and Inflation GPS, trade nowcast and additional inputs, as we write in our Macro and market perspectives Profit margins under pressure.
The chart below shows trailing 12-month earnings growth (based on EBITDA - earnings before interest tax depreciation and amortization) for the MSCI