Loading...
Chart Of The DayMost Recent Stories

Corporate Profits as a Percentage of GDP Hits All-Time High

Interesting bit of big picture perspective here from Mark Thoma’s blog.  The chart shows after tax corporate profits as a percentage of GDP.

Depending on your perspective you might be inclined to come to extremely different conclusions about this situation:

  • Some might be inclined to believe that this means the stock market is extremely undervalued.  
  • Some others might be inclined to believe that this is an entirely unstable and unsustainable environment that is likely ripe for a bit of mean reversion which would bring us back down to something closer to the 6-7% range.

What do you think?

 

cp_gdp

Comments are closed.