Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights corporate profits.
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Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights corporate profits.
Profits High, Investment is Not
The latest data on corporate profits show further gains to new record peaks, with the second quarter showing $2.11 trillion (annualized). Before the Great Recession hit in 2008, the prior record high profits were $1.78 trillion. The runaway profits are one key reason for the high stock market valuations. An ultra-loose monetary policy has forced cash to yield zero, so the money has been chasing bonds and stocks, and to some degree real estate.
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