by John Rubino
Corporate profitability is one of the canaries in today’s financial coal mine. If companies are making more money each year they tend to hire more people, pay more taxes and generally make life easier for everyone else. But when earnings decline, everything from government budgeting to personal financial planning gets much harder.
Viewed through this lens, 2015 was a “coming to grips” year in which the financial markets vacillated over the meaning of falling corporate profits: Are they an aberration or the new normal?
The next corporate earnings season — commencing this week — will apparently settle the matter in favor of new normal: