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The Credit Impulse and the S&P Year on Year Earnings
This credit impulse really works in anticipating the inflection points for year on year earnings with actually a predictive power of about 12 months. So if you were looking at this credit impulse going through the roof, that's the blue line measured on the left hand side of the chart. Since then, we haven't seen much on a pace of injection basis, right? That's the pace of growth of credit can't keep up. It actually drops. Now, does it mean equities are a dump? Not really because as we as we well know, it's about earnings, earnings growth, and it's about valuations as well. The jury is still out on that. But it definitely tells