The obvious trend in tech earnings vs the non-obvious trend in non-tech... Here's one of the most interesting charts of the year. The blue line is probably no surprise — US tech stock prices have been powering ahead driven by a mix of hype and fundamentals (earnings).
We probably all know by now how much of the strength in the S&P 500 index has been driven by big tech, but this also carries across to earnings. On the other hand, non-tech stock earnings have seen almost a 3-year period of stagnation.
In real CPI adjusted terms it’s a full-on earnings recession (the below chart is in nominal terms). No wonder ex-tech have been lagging behind. And no wonder tech have been leading the charge.
