SMLL - Q2 2020 Corporate Profits: The Tax Lever Already Has Been Pulled

Recently, we received the second release of the Q2 GDP report, which contains data on corporate profits across the entire economy. The corporate sector is far larger than the handful of companies we watch on our screens every day, and the profits across the whole economy, both public and private, are critical to monitor.

While public companies are generally larger, employment opportunities, debt service capabilities, and the ability to grow are even more critical to monitor in the aggregate corporate sector. The performance of Apple does not foreshadow economic activity in the broader corporate sector.