Chart Of The Day: Huge Drop Expected in Corporate Earnings

ByGary Kaltbaum
1 Comment

“Pre-tax earnings probably fell 9.5 percent in the fourth quarter from a year earlier, after dropping 5.1 percent in the third quarter, according to economists at JPMorgan Chase & Co. in New York. That would be the biggest decline since the 31 percent free fall in the closing months of 2008 during the height of the financial crisis.

Why is that important? Well, history shows that when profits fall, the economy often follows them downwards. An earnings hit of the size that JPMorgan says is taking place has led to a recession within three years about 90 percent of the time.” Full story here11 earnings estimates:

One Comment

  1. Hey Gary – keep the sushi train roliin! – very jealous. Be safe.
    Here is a debt chart on a Green Utility Company – Sun Edison – Looks REALLY UGLY!
    http://www.bloomberg.com/news/articles/2016-03-23/sunedison-may-face-1-4-billion-default-if-earnings-delayed-more
    Additionally, a very large mid tier furniture store is going out of business here in Phoenix( multiple valley locations) – called The Roomstore.
    This is another sign of decay of middle class and housing formation decline- more moldy jello forming underneath the surface……
    RM – Phx

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