U.S. Corporate Profits vs. S&P 500 EPS

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 Merrill Lynch Global Research

U.S. NIPA Profit Margins and Recessions

U.S. NIPA Profit Margins and Recessions Chart showing the longest margin contraction in post-war history, for nearly 5 years. Image: Oxford Economics

Profit Margins of S&P Large Caps and Small Caps

Profit Margins of S&P Large Caps and Small Caps Profit margins between small and large caps are widening. Industries with highest concentrations are getting all of the profit margin improvement. Image: Arbor Research & Trading LLC

Russel 2000 and Unprofitable Small Caps

Russel 2000 and Unprofitable Small Caps The proportion of small caps that are unprofitable has climbed to nearly 30%. This level is generally only observed during recessions. Image: BofA Merrill Lynch Global Research

Proportion of Unprofitable IPOs

Proportion of Unprofitable IPOs The proportion of unprofitable IPOs has reached 70%, the highest level since the tech bubble 20 years ago. Image: BofA Merrill Lynch

U.S. Corporate Profits and S&P 500

U.S. Corporate Profits and S&P 500 Corporate profits have mostly been flat over the past five years. Is a new bubble being formed? Image: Oxford Economics, Macrobond