7c-ranch

Have We Already Reached the Market's Turning Point?

Thank you for the very thoughtful coments. I start by stating that most people. like myself are neither permabull nor permabear; I merely want to employ capital in a thoughtful, efficient manner. This analysis, in one form or another is going around quite a bit. I am confused. I did my own research and found that indeed US corporate profits increased from 7% of GDP in 2001 to 10.3% of GDP currently. This analysis at its core proposes that this measure means US markets are expensive to EU markets, among other things. When I look at EU corporate profits to GDP they have been at 10-11% since 2001;in fact they were 7% of GDP last in 1994. Why then is not the conclusion that US company's outsourcing production to other countries; following the lead of EU counterparts, causing the percentage of profits to GDP to mirror the EU ratio? On that basis, the risk to the market is protectionism and capital controls that would push the percentage in the US lower. If that were to occur, I agree the market would decline dramatically. Otherwise, the analysis seems not to fit the anecdotal and actual changes in how US companies compete globally.