financialsense.com / ANDREW ZATLIN / 09/08/2016
What makes me think the economy is slowing?
Because that’s what corporate America is saying.
We know that there’s an industrial recession going on… even if we remove those commodity impacted sectors like materials. It’s no longer an excuse. Revenues continue to contract. Businesses expect anemic growth through 2017.
But never fear: even though companies are guiding revenues for 2016 and 2017 to stagnate, they expect earnings to shoot up. How can revenues stay flat while earnings rise?
Partly from companies instituting cost-cutting measures.
For example, sales people have been told to cut back on the expensive wining and dining.
Ruth Chris’ steakhouse reported a drop in foot traffic this last quarter. And, in case you didn’t know, business meals are the majority of Ruth Chris’ businesses.
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