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Earnings

What are earnings doing?
Forward EPS + Revisions

The earnings engine: implied forward operating EPS plus revision momentum.

How Backed out of price and the forward multiple; revision = the 63-day % change.Formula ^GSPC ÷ forward 12m P/E; revision = 63-day % changeSource multpl forward P/E + S&P price

forward_eps

How to read Left axis is the implied forward earnings level — a rising line is earnings expansion, a roll-over is contraction. The right-axis line is the momentum of those earnings (their 63-day change): above zero estimates are being marked up, below zero marked down. The real tell is divergence — price grinding higher while the revision line turns down means the rally is outrunning the earnings actually being penciled in.

A FREE proxy for the (paid I/B/E/S) consensus forward EPS.

Forward ERP (Fed Model)

The forward equity risk premium — the Fed-model relative-value read.

How Forward earnings yield minus the 10-year.Formula (1 / forward P/E) − DGS10/100Source multpl + FRED DGS10

forward_erp

How to read The line is the forward earnings yield minus the 10-year — how much extra yield equities offer over Treasuries. High or rising = equities relatively cheap vs bonds; falling toward or below zero = that cushion has gone, you are paid little or nothing extra to own stocks over bonds (a late-cycle relative-valuation squeeze). Read it as relative value between the two assets, never as a market-direction call.

The Fed model is a valuation COMPARISON (academically critiqued), NOT a return forecast.

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