Ruh Roh

This chart shows corporate profits as a fraction of GDP. There are two lines, the blue line is the calculated sectoral balance based on the equation – Corporate Profit = Investment + Dividends – Household Saving – Government Saving – Foreign Saving, the red line is the reported number. All data from the St. Louis Fed. Needless to say, the historical comparison should be an attention-getter.


Credit to blogger “Jesse Livermore.”

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