Jason Trennert, chief investment strategist at Strategas Research Partners, recently discussed his views on the economy and believes the recent economic data is typically associated with an economy that is in a recession. In his Barron's article this week, Long-Term Bull, Short-Term Bear ($), Trennert noted,
"Profit margins are two standard deviations above the mean, and nominal GDP growth of 3.1% in this year's first half was at a level normally associated with a recession."
As he discusses in the below video, much of the earnings strength seen by companies has come from expense reduction (margin expansion) and not top line revenue growth. He believes current policies coming out of Washington are not growth oriented, the impending fiscal cliff being one such example.
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