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

Will the profit cycle ever slow? If and when it does, how low can the SP500’s EBIT Margin fall from a cyclical high that it has NEVER been able to surpass? As you can see in today’s Chart of The Day, it would have to be “different this time” for that NOT to happen. 

The Top 3 Causal Factors that are already changing that will affect SP500 Earnings are: 

  1. Strengthening US Dollar
  2. Accelerating US Wage Growth
  3. China, Europe, Japan, EM , etc. (Global Growth) #Slowing 

CHART OF THE DAY: Will the Profit Cycle Ever Slow? - 05.17.18 EL Chart