Dear Louis, I've seen multiple cheery headlines this week, all celebrating how we've narrowly avoided a recession. If you're raising your eyebrows at this news... There's something you need to see. A big reason for this newfound optimism is that the earnings recession that has plagued U.S. corporations for the past year has finally come to an end. And it's true... In Q3, companies reported much higher-than-expected profits. Great news! On the surface... But as forensic accountant Joel Litman and I covered this week... when you dig into these companies' balance sheets and uncover the truth... These merry earnings reports tell a very different story. You see, Q3's record-high profits did NOT come from increased sales. In fact, corporate revenues just notched a 10-year low. Instead, they came from extreme, drastic measures to cut costs. Public companies spent Q3 quietly pulling the plug on new projects... implementing hiring freezes... and continuing the extreme wave of layoffs we've seen crashing over corporate America. In other words, public companies aren't growing – they're tightening their belts! By taking the exact steps we typically see during a recession. Now, don't misunderstand me – I'm not advising you to panic and sell all your stocks before January 1. (For my complete forecast on what to expect in the new year, go here.) But I don't want you to be fooled... Today's headlines would make you think American corporations are acting like a recession is over. When instead, they're actually acting like a recession has just begun. And as I explain here... the repercussions for your wealth could soon be astronomical. Regards, Marc Chaikin
Founder, Chaikin Analytics | 
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