John Rubino: The End Of The Bull Market, In Three Charts

Stocks have completely recovered from their flash bear market of late 2018.

But now they face a hard question: Can already record high prices continue to rise in the face of falling corporate profits?

Let's start with the "falling corporate profits" part:

A business generates improving profits when the things it sells rise in price faster than the cost of production. So on the following chart you want labor costs to be flat or falling, and the other line - a measure of inflation - to be rising. But lately the opposite is true.

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John Rubino is the founder and manager of the popular financial website DollarCollapse.com. Mr. Rubino is the co-author, with GoldMoney's James Turk, of The Money Bubble and The Collapse of the Dollar and How to Profit from It. He spent the 1980's on Wall Street as a Eurodollar trader, equity analyst and junk bond analyst. During the 1990's he was a featured columnist with TheStreet.com and a frequent contributor to Individual Investor, Online Investor, and Consumers Digest, among many other publications. He currently writes for CFA Magazine.