Friday, August 26, 2016

Corporate profits headlines -2.2% but misleading - Q2 2016

Corporate profits are down 2.2% from a year ago.  This chart shows that.  But last quarter they were down 5.3% and the quarter before that down 19.7% so there has been a big improvement.

Here is a chart of corporate profits in dollars.  It definitely shows that profits have stalled.  BUT.  Corporations are giving positive forward guidance.  That is a really bullish sign for the economy.  Right?

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