Below is an updated graph of the historical average market implied sales growth for the S&P for the past 10 years. Even in 2002, the market did not forecast negative sales growth for the typical firm in the S&P 500. Today, the market is calling for these firms to deliver -3.7% annual sales growths over the next 5 years. This is an improvement from November’s expectations of -8.7%.
If you are interested in learning more about our view on the market implied expectations in the S&P 500, we previously discussed in more detail in our Then and Now Special Study