But the report, which contained so-called national income and personal accounts data, showed that corporate profits for both Main Street and Wall Street peaked as far back as late-2014, not late last year as previous numbers had shown.
"This divergence is quite normal just before a recession with the NIPA profits data proving, in retrospect, to be a truer representation of the underlying trend."Edwards' note included a throwback to 2008, when stock market-based measures of profits appeared much healthier than economy-wide gauges like those contained in the NIPA data.Edwards finds the NIPA numbers on profits to be more trustworthy because they are based on tax data collected by the IRS.
Edwards doesn't dispute this fact. But he views the contribution that business investment makes to economic growth as an indicator that should not be ignored.
Traders:
Traders are short term - what do they care about potential recession signs? A Bear market can be traded as easily as a Bull market.
Good job!!! Flash such explosive headlines and when people click ask them to subscribe 🤦♂️