Tip:
Highlight text to annotate it
X
This is financial advisor Patrick Munro, discussing the average earnings yield of the S&P 500.
It's important to note here that the Standard and Poor's 500, the 500 largest companies
in America are a widely used benchmark for average earnings and health of the economy.
Included in these 500 largest companies there is every single sector of the economy; from
trucking and transportation to pharmaceuticals to real estate to any particular sector that
you could possibly imagine. Each of these companies operate in a different format; they
have different earnings ratio, but when blended together in an annual report they will generate
an absolute average earnings yield per year, per quarter, per any measurement figure that
you would care to look at if the data is available. At any given time when this average earnings
is looked at, because of the wide nature of the S&P 500, and every industry sector that
they touch in this country an economist can get a general feel, or pulse rather of the
health of the entire country. This is Patrick Munro, financial advisor, discussing the average
earnings yield of the S&P 500.