National Income Shares

(1) A remarkable rebound in profits. (2) Wages and salaries account for less than half of National Income. (3) Tax-free benefits and deficit-financed entitlements boost personal incomes. (4) Record S&P 500 earnings during Q3, yet Q4 estimates are down. (5) Expectations for 2012 remain optimistic, perhaps too much so. (6) Europe’s credit crunch is going global. (7) OECD cuts its forecasts for global growth. We may do so too. (8) That’s not good news for global capital spending. (9) Still neutral on S&P 500 Industrials sector.