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
Global Profit Cycle – South Korea Exports and Global EPS Chart showing the correlation between South Korea exports and global EPS. Image: BofA Global Investment Strategy
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
Global Manufacturing PMI and Profit Expectations Rising profit expectations suggest a rebound in the global manufacturing PMI. Image: BofA Global Fund Manager Survey
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
Cumulative Change in Real S&P 500 and Real Profits Chart suggesting that a new bubble is being formed. Corporate profits have mostly been flat in recent years. Image: Real Investment Advice
U.S. NIPA Profit Margins and Recessions Chart showing the longest margin contraction in post-war history, for nearly 5 years. Image: Oxford Economics