Common Sense Living

Corporate Profits Expected To DECLINE In The First Quarter (per CNBC)

For the better part of a year, I have been watching this complete disconnect between corporate profits, and the stock market bubble. The chart in this article says it all! Profits are moving rapidly lower. For some reason the stock market just doesn’t seem to care. At least not yet.

Here is the CNBC article:

From September into December last year, we saw the stock market dive in response to the bad profit picture. Then a bunch of investment banks were told by the Treasury Secretary to “pump the market”, and they did. ( )

So while the economy was supposedly falling apart in December, in January everything just got all better? Not likely! And the profit picture above is telling of how the market bounce is probably going to end.

I’m not sure how long this stock market bounce will continue, but if profits continue falling like they are, the next drop should be much worse than the last!

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