Stock Market Complacency Déjà Vu

The following chart shows corporate profits divided by wage and salary disbursements going back to 1947. I have added three trend lines for your consideration.


Click to enlarge.

Other than being near the very top of an exponential trend channel that cannot mathematically even exist long-term, what could possibly go wrong? And for those who think the exponential trend channel is sustainable, I would ask how corporate profits can someday exceed wages?

In my opinion, this is simply an accident waiting to happen. I expect a return to the blue trend line at some point in my lifetime, perhaps even many points.

In related news, I was driving back from 4th of July activities. Complacency struck me at a rest stop. I expected rest. What I got was a somewhat different outcome. I exited my vehicle and walked about 10'. My foot slid off the curb to the right and my body fell to the left. I sprained my ankle to the point I required a trip to the emergency room once I got home (250 miles away). I am now on crutches, much like this supposedly strong and resilient economy of ours. Sigh.

The good news is that unlike our economy over the last decade or so, I did not actually break anything.

Source Data:
St. Louis Fed: Custom Chart