Limits To Growth

The most significant report today was the surge in the trade deficit, which of course is a straight subtraction from GDP (as it represents goods and services imported rather than produced domestically).

This caused GS, even though bullish, to lower its 1Q GDP estimate to 1.8% annualized, FWIW. Long term corporate profits are limited by GDP growth, and as ECRI points out, that isn’t happening.

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