Are we at peak profit?

In January of this year, Paul R. Ried Financial Group January 2018 Market Commentary was suggesting low returns ahead, which is how it has played out so far in 2018.
"What does this mean for today? It is just a reminder that, for multiple reasons, investors should lower return expectations for the market. We currently not only sit at a low unemployment rate of 4.1% (by itself not a bad thing) but we also have an expensive market with the S&P 500 at a CAPE ratio of 33.
As we saw previously, returns have historically been lower when starting from a low unemployment rate, but it has been particularly low when combined with an expensive market."

Their commentary was also questioning the impact of tax cuts when corporate profits as a percentage of the economy (measured by GDP) are at historically high levels.

Are their structural reasons for sustainably higher profits?
- the impact of the information revolution? But it seems like the profit pools enjoyed by media, auto, telecoms and retail are about to really feel the heat of Amazon, Netflix, Uber and others who are willing to invest for the long term
- productivity? But productivity actually seems to have seen only incremental improvements in the 2000s, as wages have been kept down. And the larger trends do not seem to help wage growth - more Amazon warehouse and delivery jobs, relatively less higher paid manufacturing workers, on balance.
- tax reform? Well, probably more of a one-off shot, and the reality is that it does not help firms with global footprints, and trade policies could well erase the extra income for US domestic firms.

While media headlines celebrate strong earnings growth, the market clearly understands that strong EPS growth and tax reform is potentially a one year shot. So much so, that even a CFO's passing comment of peak drove the stock and broader market down. Caterpillar shares reverse gains to slide 6% after CFO says Q1 was peak for the year - MarketWatch

Since "market prices are always wrong in the sense that they present a biased view of the future" (Soros according to A Developing George Soros Style Boom-Bust - ValueWalk), this blog is clear that "after this year we’re going to have a HIGH hurdle to clear. And current expectations are for this global synchronized growth trend to continue. Remember, current trend extrapolated ad infinitum… But will it?"

Perhaps as we hit peak growth in Q3, the market will re-adjust more significantly for the slower growth ahead.