The ‘new normal’ is likely to see behind corporate earnings growth. But that doesn’t mean we’re in for another major recessionThis time,it’s real. The corporate earnings recession, that is. For the better part of six months now, or markets pundits contain been muttering absent about a lack of growth in corporate profits. Without that,the classic theory goes, you just can’t contain other estimable things, and like economic growth,job growth and stock market growth. The problem – until now – is that most of those analysts contain been looking at the corporate earnings picture too broadly. That’s why the economy has kept growing (however anemically) and employers contain continued to add jobs (just not at the impressive pace that we all might like to see), and why the stock market has at times been able to shrug off its malaise and trade in positive territory this year, or leaving stocks at relatively tall valuations. Continue reading...
Source: theguardian.com