As Corporate Profits Slow, Watch For More "Non-Traditional" Accounting

HFA Padded
Mark Melin
Published on
Updated on

“A financial obfuscation” drawn straight from the 2000 dot-com bubble, which makes corporate accounting magically look positive when they might have been negative, is making a comeback, a recent Wall Street Journal report observed, benchmarking what for some is an unwelcome trend in accounting.

Near 13 percent change in results when traditional accounting metrics are used

The climax of the dot-com historic bubble occurred on March 10, 2000 when the NASDAQ was trading near 5000 and then promptly dropped to near 1900 one year later. A degree of the causation behind the loss had roots...

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HFA Padded

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.