This chart shows the S&P500 index versus the earnings of S&P500 companies.
Here, we can clearly see the increasing divergence between the value of the S&P500 companies and their earnings.
This would reinforce the narrative that the equity market has been driven by central bank liquidy rather than their underlying fundamentals.
Will 2021 mark the end of this divergence?
The answer to this question is what makes this chart one of the 4 to follow in 2021.
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