Stocks have risen to record highs on investor hopes for President Donald Trump’s push for tax cuts, less regulation and billion-dollar spending on roads, bridges and airports. The growth in corporate profits is also cited as a driver of market gains, but one strategist says investors need to be wary of those reports.
Albert Edwards, global strategist at French bank Societe Generale, says earnings reports for U.S. companies show that their overseas profits have grown but are still falling domestically. The decline may even point toward recession.
“A 24 percent year-over-year surge in net U.S. overseas profits and a 12 percent year-over-year rise in financial sector profits have disguised the fact that domestic non-financial economic profits are really struggling badly and are still down 6 percent year-over-year,” Edwards says in a June 1 report obtained by Newsmax Finance. The data he cites are from National Income and Product Accounts produced