Corporate profits have never been fatter — or accounted for a bigger portion of the overall U.S. economy. We dig a little deeper into this now with our Chief Equity Strategist and Economist, John Blank.
1. Without getting too technical, what are the main reasons for this?
2. According to published Bureau of Economic Analysis figures, U.S. Corporate After-tax Profits recently made up about 11.7% of GDP. This at a time of rising inflation with consumers paying more for goods. What does this imply for the U.S. economy?
3. What about wages?
4. Then there’s the projection of 5 rate hikes this year, up from an earlier projected 4. So, does all of this have a negative impact on U.S. GDP going forward?
5. Is the bar for growth being set lower?
6. Do you think we could see more changes to Fed monetary policy if inflation continues upward?
7. What do you see currently as the main economic risks both here and globally?
8. Do you see the Russia-Ukraine situation as more of an impact to the markets vs the economy?
9. Strong Buy Stocks to be aware of now include STMicroelectronics
STM
, BP
BP
and Asbury Automotive Group
ABG
Our Chief Equity Strategist & Economist, John Blank, sizing up corporate profits and the economy. With John, I’m Terry Ruffolo.
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