Q: : I heard the term “earnings recession.” What does that mean?

A: The definition is like that of economic recession in that it refers to 2 consecutive quarters of lower corporate earnings. We have experienced earnings recessions in the recent past without experiencing economic recessions. Brad McMillan identified two such instances in the last 8 years .

In other words, earnings recessions are normal and do not predict economic recessions. It can be an interesting thing to monitor, but there are better economic indicators to follow