CHART OF THE DAY: This Doesn't Always Signal Recession But It Always Predicts Stock Crash

02/02/16 07:56AM EST

Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more.

"... One of the most important relationships there is in macro is between PROFITS and STOCKS. And, unless it’s different this time, US stocks have always crashed (greater than 20% draw-down from prior peak) when US corporate profits go negative for 2 consecutive quarters."

CHART OF THE DAY: This Doesn't Always Signal Recession But It Always Predicts Stock Crash - 02.02.16 chart

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