"Declining corporate profits as measured by US equity EPS have been closely followed by, or coincided with, a recession 81% of the time since 1900," Lakos-Bujas at JP Morgan wrote in a note to clients this week.
And given where the profit cycle is, Lakos-Bujas said that history says only an outside economic shock has been able to keep the economy out of recession.
External shock? That would be a steady stream of Asian home buyers, courtesy of the Communist Party. Am I racist No, Asia is a geographic region known for selling the American consumer good things, If you have been running a trade surplus with the American consumer, then by all means, come on over and bring your surplus.
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