After tax corporate profits of non-financial corporations have declined 0.03% in the past twelve months (click on graph to enlarge). Why should we care?
Because business will soon start cutting costs. So?
Well, it will increase the chances of recession.
How can we take advantage of this?
This trend will have a positive impact on inflation and bond yields.
Some stock sectors will do very well in this environment.
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
1 comment:
Do you agree with Dr. Feldstein's cure for recession?
"Lower interest rates now would help," Martin Feldstein, president of the influential National Bureau of Economic Research, told an annual retreat of central bankers and academics, including a number of senior Fed policy-makers.
Feldstein, who warned of a "multiplier effect" from declining home prices and lower consumer spending, said a cut of as much as 100 basis points might be warranted.
Post a Comment