Taps Coogan – April 28th, 2022

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The following chart, from Bank of America (BofA) via Isabelnet, shows BofA’s earnings-per-share (EPS) model which points to negative earnings by year end.

The punchline is that BofA’s model sees negative EPS growth by the end of the year, coming off the back a record earnings growth last year. The setup looks pretty similar to what happened circa 2013, which wasn’t exactly apocalyptic for markets. Of course, the market was able to keep pushing higher in 2013-2016 because of endless ZIRP, QE3, negative rates in Europe, etc… That isn’t in the cards this time around.

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