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
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
Global Nominal GDP and Corporate Profits This chart shows the correlation and the slowdown in global growth and corporate profits. Historically, margin pressures have preceded the start of recessions. Image: J.P. Morgan
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? Image: Nordea and Macrobond