"Corporations have NEVER made as much money as they are making now." Thank you Stuart Varney @foxandfriends Jobs are starting to roar,watch!
— Donald J. Trump (@realDonaldTrump) August 1, 2017
zerohedge.com / by Tyler Durden / Aug 1, 2017 11:38 AM
Earlier today, in an attempt to deflect from the relentless scandals that plague his administration, Trump tried to pivot attention to either the stock market, highlighting the record high 22,000 print in the Dow Jones, while also pointing out that “Corporations have NEVER made as much money as they are making now.”
There are two problems with this tweet.
First, it’s wrong. While on a non-GAAP basis, which excludes the impact of “one-time, non-recurring” items, and pretty much anything else management does not want counted – with the explicit blessing of the biggest moneys in the room known as the FASB – which allows companies to ignore countless above the line expense and cost items, adjusted “profits” may indeed be at an all time high, but those “profits” are a monetary mirage, meant only to justify the record high level in the S&P ever applying (ever greater) P/E multiples.
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