Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough.
If there was a cartoon (our very own Bob Rich will create one!) that made a short statement about Friday’s US Jobs Report, it would be that US Corporate Margins have achieved all they could from a margin perspective. Now they’re going to get squeezed.
Write it down: Margin Squeeze. That’s what happens when both GDP and revenues are #slowing from their cycle peaks and wages continue to #accelerate pro-cyclically. Unlike interest rates, the almighty Fed can’t cut wages.