Gluskin Sheff
- Top economist David Rosenberg has warned that corporate profits are shrinking.
- A decline in corporate profits could be a sign of an oncoming economic slump, and weigh on the stock market.
- The veteran economist told Insider last month he thinks a recession is only just starting.
Veteran economist David Rosenberg warned that corporate profits are shrinking, which doesn't bode well for stocks and is bad news for the US economy.
A slide in earnings could pull down stock prices, as shares are typically valued at a multiple to a company's profits, Rosenberg warned. It's also a classic sign of an oncoming economic downturn, as weakening corporate finances suggest demand is falling and growth is likely slowing.