Here’s a picture of the slowing growth phenomenon that’s now turned into a three or four quarter negative trend.
Yes, the energy sector is a big part of the profit and revenue drag, but the earnings flatline has been far broader than just a single sector of the economy. This has certainly impacted Fed policy and has created a pause in investor optimism.
With the recent GDP print of 0.5% in the first quarter of 2016, on the back of only 1.4% annual growth at the end of 2015, a bit of investor anxiety is warranted. This is especially the case after a roughly 15% rebound in stock prices over the past two months.
