S&P 500 Index vs. U.S. Corporate Profits After Tax Index Do valuations still matter? This chart puts into perspective the wide divergence between the S&P 500 and U.S. corporate profits after tax. Image: Morgan Stanley Research
Corporate Profits After Tax vs. S&P 500 Do valuations still matter? The current divergence between the S&P 500 and corporate profits after tax is the widest on record. Image: Real Investment Advice
Global Corporate Profits, Level and Cumulative Loses J.P. Morgan expects global corporate profits to fall by about 70% in the first half of 2020. Image: J.P. Morgan
S&P 500 vs. Corporate Profits After Tax The current divergence between the S&P 500 and corporate profits after tax is the widest on record. It is possible to close the gap “down” with a recession. Image: Real Investment Advice
U.S. Corporate Profits and 10Y-3M Yield Curve While the divergence between large-cap profits and the rest of the economy is the widest on record, the steepening yield curve suggests an earnings rebound. Image: BofA Global Research
U.S. Corporate Profits vs. Assets U.S. corporate profits are near 20-year lows relative to fixed assets. The alternative to a recovery in corporate profits is the increasing risk of recession. Image: BofA Global Research
U.S. Corporate Profits over the Business Cycle U.S. corporate profits are at risk in the late stage of the expansion. mage: BlackRock Investment Institute
U.S. Corporate Profits vs. S&P 500 EPS The current divergence between large-cap profits and the rest of the economy is the widest on record. It is possible to close the gap “down” (recession) or “up” (reflation). Image: BofA Global Research
S&P 500 Operating Earnings and NIPA Corporate Profits Goldman Sachs expects S&P 500 margins to rise slightly in 2020. Image: Goldman Sachs Global Investment Research
U.S. Business Cycle: Private Non-farm Employment, Corporate Profits and Employee Compensation This chart highlights the decline in corporate profits and rising wages, one characteristic of the late stage of the business cycle. Image: Fidelity Investments