This was a good segment on Bloomberg today discussing the recent weakness in corporate earnings. Some of the highlights:
- There have been 63 negative preannouncements.
- There have been 13 positive preannouncements.
- The current ratio of 83% is the highest since the Great Recession.
- The last three recessions were all preceded by large spikes in this ratio.
Now, I don’t necessarily think this is a recession indicator, but it’s becoming very clear that the surge in corporate profits is beginning to face some headwinds. There’s more below via Bloomberg’s Adam Johnson: