Goldman Sachs: Corporate America Is In Better Health Than Many Think

Corporate America is in better shape than many analysts and investors think, according to a research report from Goldman Sachs.

By taking a broader perspective than the narrow listed sector, which is heavily influenced by shifts in foreign demand and the Dollar, Goldman’s data shows that corporate America as a whole, seems to be in relatively good health.

[buffett]

Corporate America is charging ahead

There are six key themes behind Goldman’s thesis:

1. Corporate America as a whole is still profit making, and profits are expanding rapidly. According to the Federal Reserve’s Flow of Funds report, during the second quarter domestic non­financial pre-­tax profits rose 10.6% year-on-year. On the other hand, S&P 500 earnings per share declined by 11% year-on-year during the...