It’s the earnings, stupid (and they’re going down)

Analysts and pundits have been trying to understand why stocks have had such a bad start to 2016.
A new report from Research Affiliates offers some insight. 

 According to the firm’s report, as-reported EPS of the S&P 500 have declined 14% from their apparent third-quarter 2014 peak to the third-quarter of 2015. 

 Over the past quarter-century, drops of such magnitude have occurred only in 1991, 2001-2002, and 2008-2009. 

 Each drop coincided with substantial losses for stocks.
John Coumarianos, MarketWatch Feb 3, 2016 

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