Advisory

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Consensus expectations for S&P 500 companies’ earnings per share for 2024, 2025, and 2026 are $US243, $US279, and $US317.

Based on current PE ratios, the index is trading in line. If the EPS increased to $279 next year, the index would be at 6000 points. The question is, can earnings grow at the forecast rate, or will slowing global GDP begin to drag, and earnings come in at a lower than forecast level in 2025?

For share-term traders, you should be on the long side of the index (once again), with a stop loss at 5493.