That’s because the next bull market—whenever it begins—will be heavily dependent on those margins remaining not only at their current well-above-average level, but expanding even further.
The accompanying chart provides the historical context. As you can see, profit margins have been rising for many years, and hit a record in the second quarter of 2021. Even though they currently are only modestly below their mid-2021 record, their decline over the last year and a half has been accompanied by a bear market on Wall Street. That is not a coincidence.
In other words, given these assumptions, the stock market over the next decade will barely keep up with inflation.
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
27 stocks to buy for big earnings beats in 2023: Goldman SachsGoldman Sachs: Buy these 27 stocks that will beat earnings estimates by at least 10% in a year when many companies will see their profits shrink
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: Reuters - 🏆 2. / 97 Read more »