Jim Swanson, chief investment strategist at MFS, relays some key findings from his research, which included creating a standardised tool to measure profits and the economy.
Given that we have just seen the end of 2012’s fourth-quarter profit report, we have ample fodder to assess the state of the US corporation. The health of these corporations is one of the five areas of the US economy I analyse to find clues to its future direction. Corporate health Corporations are still flush with cash, but cash balances are starting to fall. In the fourth quarter of 2012, earnings were solid but not exceptional. Revenues from companies in the Standard & Poor’s 500 stock index did better than expected in the fourth quarter — an indicator that the international marketp...
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