S&P 500 Operating EPS vs. USA National Income, Corporate Profits Thanks to buybacks, this chart clearly shows the current divergence. Is a new bubble being formed? Picture source: Nordea and Macrobond
U.S. Corporate Profits, Capital Expenditures, Dividends and Buybacks What would happen if U.S. companies reinvested instead of buying their own shares and paying dividends? Picture source: Financial Times
Japan Corporate Profits Leads MSCI World EPS This chart suggests that Japan corporate profits leads MSCI World EPS by 7 months. Picture source: Nordea and Macrobond
S&P 500 and NIPA Corporate Profits After Tax S&P 500 rose relative to NIPA corporate profits after tax, thanks to buybacks. Picture source: Morgan Stanley
U.S. Yield Curve Leads Corporate Profits This chart suggests that the U.S. 10-year less 3-month yield curve leads corporate profits by two years. Picture source: Oxford Economics, Macrobond
S&P 500 EPS vs. U.S. Nonfinancial Corporate Profits Creative accounting is imaginative ways to present accounts. The divergences between earnings and U.S. nonfinancial corporate profits occur before recessions. Picture source: Gavekal, Macrobond
What’s The Risk Of An Earnings Recession in 2019? Maybe Less Than You May Think US-China trade uncertainty is the enemy of growth, and the impact of tariffs will weigh on corporate profits. But it looks like we’ll avert an earnings recession in 2019 if a trade deal with China is reached this summer. Picture…
