How Real are Current S&P 500 Earnings?
Aggregate corporate earnings are the primary driver of stock market valuations and are communicated as “Reported Earnings” based on GAAP (generally accepted accounting principles) and “Pro-Forma” which exclude certain on-time or extraordinary items. The problem is corporations are reporting these “special, one-time” items excluded from pro-forma earnings quarter after quarter leaving investors with an unclear picture […]
