past 25 years America’s stockmarket has soared. Far from being built on thin air, this long bull run has rested on a boom in corporate profits. The worldwide earnings of all American firms, whether listed or not, have risen by 455% over this period and are now 35% above their long-term average relative toGlobalisation, tepid wage rises, the ascent of tech and feeble competition made the bonanza possible. But as some of these forces ebb, the era of relentlessly expanding profits is under threat.
Globalisation helped make firms more efficient but now pulls down profits. The share of pre-tax earnings made abroad has slipped from 35% a decade ago to 25%. Company conference calls with investors now feature discussions about trade wars. At home the jobs market is tightening, putting more pressure on wage bills, which rose by about 5% last year.
During recessions corporate earnings typically fall by a sixth or more. But even if the economy keeps on growing—at 121 months old the expansion is now the longest on record—downward pressure on profit margins is on the cards. That would allow consumers and workers to get a better deal from big business, but presents two risks for investors and executives.
Boo fucking hoo.
Is this photo from 1990?
I can write obituary of Kraft-Heinz, At&T will be gobbled up soon.
Market just hit an all time high for the 2nd time in 1year
Or maybe just plain stoopid!
Economic inequality catching up to them? It was a good run... for them.
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Bank of America Merrill Lynch beats Wall Street forecasts with record second-quarter earningsBank of America Merrill Lynch announced second-quarter earnings results on Tuesday.
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Bank of America is set to report second-quarter earnings — here's what the Street expectsAnalysts and investors are keen to find out how looming interest rate cuts will impact the second biggest U.S. lender by assets.
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IBM reports better-than-expected earnings, maintains full-year guidanceIBM's year-over-year revenue has now declined for four quarters in a row. Impact from Red Hat is not yet factored into the company's guidance. This is really rude and disrespectful, but I couldn't help myself. Does anybody else see a gremlin here? The resemblance is uncanny. Sorry for the disrespect.
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