From Chart of the Day
S&P 500 Earnings - Inflaton Adjusted
If I look at the inflation adjusted earnings, earnings remained flat around $30 from 1965 to around 1980 before they started declining, and then increasing from 1994 on. This was around the same time as adjustments were made to the methodology of calculating the CPI
Today it appears that the earnings are at their lowest ebb. I wonder how the graph would have looked if the ShadowStat CPI produced by John Williams had been used to adjust for inflation
S&P 500 Earnings - Inflaton Adjusted
If I look at the inflation adjusted earnings, earnings remained flat around $30 from 1965 to around 1980 before they started declining, and then increasing from 1994 on. This was around the same time as adjustments were made to the methodology of calculating the CPI
Today it appears that the earnings are at their lowest ebb. I wonder how the graph would have looked if the ShadowStat CPI produced by John Williams had been used to adjust for inflation
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