Hole At The Center Of The S&P Rally—-170 Basis Point Profit Margin Squeeze Is Historic Recession Warning

(Before It's News)

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

davidstockmanscontracorner.com / By Lu Wang at Bloomberg / April 19, 2016

Stocks are rising, the worst start to a year is a memory, and short sellers are getting pummeled. And yet something is going on below the surface of earnings that should give bulls pause.

It’s evident in quarterly forecasts for the Standard & Poor’s 500 Index, where profits are declining at the steepest rate since the financial crisis relative to revenue. The divergence reflects a worsening contraction in corporate profitability, with net income falling to 8 percent of sales from a record 9.7 percent in 2014.

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The post Hole At The Center Of The S&P Rally—-170 Basis Point Profit Margin Squeeze Is Historic Recession Warning appeared first on Silver For The People.

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