Expected Market Sector Growth Rates

With almost half the S&P having reported their earnings, we know all too well how bleak the employment picture is with a daily barrage of "streamlining" bullet points in each company's earnings press release. Another interesting factoid is to compare the estimated earnings growth rates of different companies by sector, whether based on company guidance or consensus estimates. What is surprising is the nearly 80% drop in the estimated growth rate for the S&P500 from only 3 months ago. One can accuse sell side analysts (and management teams goaded by ebullient PR firms) of many things, but being realistic is probably not one of them.

On the next graph the relative growth rate estimates for the market by sector are shown. All those people saying the bottom in financials is here and today is the last day to buy at bargain prices, we suggest you take a look at the far right column.