Capital Markets: Observations & Insights

Earnings Growth Has Been Consistent

• 10-year real (inflation adjusted) EPS growth has been between 3% and 7% more than three-quarters of the time over the past 25 years, with the worst result still being slightly positive

10-yr Rolling Growth in S&P 500 Real EPS

8%

7%

6%

5%

4%

3%

2%

Real 10-Yr Rolling Growth

1%

0%

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Source: FactSet, S&P, and Alger estimates.

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