Editor's Note: Below is a brief excerpt from today's Early Look written by Hedgeye U.S. Macro analyst Christian Drake. Click here to learn more about the Early Look.
Profit Cycle/Intermediate-term: In the Chart of the Day above the rate-of-change gravity embedded in the comps is evident. The easiest comps are now rearview as we move past trough comparisons from the industrial and profit recession and we’re likely to see further sequential deceleration in year-over-year earnings growth. Comp dynamics are similar across both corporate profitability and productivity in the aggregate.
Growth Accelerating, Profits Accelerating, Productivity Accelerating is a strong bullish trinity and one that is now likely to get less good from a rate-of-change perspective.
