Profit Decline Waves U.S. Economy Caution Flag: Chart of the Day

Falling corporate earnings pose a risk for the current U.S. economic expansion that deserves more attention from investors, according to Albert Edwards, a global strategist at Societe Generale SA.

The CHART OF THE DAY shows how Edwards drew his conclusion in a report yesterday. He tracked profit after adjustment for changes in inventory values and depreciation, an accounting charge that reduces the value of assets. The figures are compiled quarterly by the Commerce Department.