From Crossing Wall Street:
One aspect of this market that I'm starting to strongly doubt is the belief that earnings growth is about to ramp up. (In other words, that the rate of growth will itself increase.)
The chart below shows the S&P 500 (blue line, left scale) along with its earnings (yellow line, right scale). The red line is Wall Street's forecast (please note, it's not my forecast, it's Wall Street's consensus). The lines are scaled at a ratio of 15-to-1, so whenever the lines cross, the P/E Ratio is exactly 15.
It's that red line that has me concerned...
More on earnings: