Are Corporate Tax Cuts Needed?

With President Obama suggesting in his Tuesday’s State of the Union address the possibility of a corporate tax cut I was left wondering; is it needed and will it help. First, let me state that I believe the federal burden in this county is too high. Serious structural changes need to be made to correct [...]

Contributions to Final Q3 GDP

This morning the BEA released its final Q3 GDP figures. GDP was revised up 0.1% from the preliminary estimate (Nov’ 23rd) to a 2.6% annualized growth rate. The consensus estimate was for 3.0% GDP growth. Below is a chart I have posted previously that is updated for Q3 final GDP. Personal consumption accounted for 1.7% [...]

Corporate Profits: What the Current Level Tells Us About S&P 500 Returns Over the Next Five Years

Last week, in his weekly market comment, John Hussman posted an interesting chart (see below) comparing the corporate profit to GDP ratio and the subsequent growth rate in corporate profits. I have previously posted on profit margins (see here and here) and will now further explore what profits margins at current levels imply about the [...]

Hussman: Bubble, Crash, Bubble, Crash, Bubble…

Hussman’s weekly market comment is a must read. He does not mince words in arguing that QE is utterly misguided and Bernanke’s leadership at the Fed has bordered on criminal. Excerpts below (emphasis mine) but please read the entire comment. Given that interest rates are already quite depressed, Bernanke seems to be grasping at straws [...]

Friday’s Economic Data: Green Light for QE2

There was no shortage of economic data released today however there were no major moves in the indices as everyone seems to be waiting for the Fed’s announcement next Wednesday. Released today were GDP, Employment Cost Index, Consumer Sentiment and Chicago PMI. Let’s have a look in that order. GDP GDP came in at 2.0% [...]