In my last post I said if I got a chance I’d prepare a chart comparing consumer discretionary to staples. I bet you thought I’d forget, didn’t you? Well after reviewing the latest S&P500 earnings data I decided to go two better and give three graphs.

While most short term investors are still focused on the negative 2008 Q4 and Q1 09 I recommend looking beyond those to the inevitable accelerating profitability and sensational year on year comparisions that await consumer discretionary.

What a chart! I still can’t believe I hung on to my one remaining energy play even though as it was such a small position for me. The sector earnings provide a lot more information than solely focusing on the S&P500 earnings. Look at energy and financials!

Yet another startling chart. While most market participants are still focusing on Q4 2008 earnings, which were clearly disastrous, a look ahead shows normal programming will soon recommence. Yes, profit margins are unlikely to be as high as in 2007, but improving profitability and highly probable survival is what investors will soon be focusing on.

My preferred outcome is for one more large sell-off, but I am not counting on it. Are you?

Related posts:

1. S&P 500 Sector Earnings
2. Sector Rotation Plus S&P Responds to Jeremy Siegel
3. S&P 500 Operating Earnings – What Are You Focusing On?
4. S&P 500 Earnings
5. S&P/ASX 200 Sector Performance Since Cycle Lows
6. Riding the Wild Equity Roller Coaster