Corporate Profits (Per Unit of Real Gross Valued Added) Were Negative for 7 of Last 8 Quarters As Dow Hits 22,000

This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.

The Dow Jones Industrial Average keeps on rising and is now hovering around 22,000.

But not every indicator is rising. Corporate profit per unit of real gross value added (after tax with IVA and CCAdj) has been declining YoY for 7 of the last 8 quarters.


Corporate profit per unit follow a similar pattern following a recesssion. They rise rapidly, then begin slowing until the point at which they are consistently declining on a YoY basis.

The following chart shows the current slowdown in corprate profit per unit of real gross value added, similar to the slowdown following Q3 2006 and Q3 1997 before recessions.


Is Winter coming?


Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.