Our friend Jason Trennert of Strategas warns of an earnings recession through 2023. This chart from Strategas gives good reason to worry. For many months now producer costs (the PPI) have been rising faster than the prices they charge (CPI). This trend isn’t sustainable obviously.

Since earnings/profits are, as Larry Kudlow has always reminded us, “the mother’s milk of the stock market,” if Strategas is right, stocks may have further to fall or consumer prices have further to rise – unless this is already all priced into the market.