Markets

UH-OH: Corporate America Is Finally Getting Nervous About Record-High Profit Margins

Corporate America has managed to deliver sky-high profits on little revenue growth thanks to expanding profit margins. Cheap debt, low tax rates, and increased productivity have fattened profit margins to record levels. While managers believe margins can move higher this year, their conviction behind that call seems increasingly shaky. “Companies […]
UH-OH: Corporate America Is Finally Getting Nervous About Record-High Profit Margins
Markets

BYRON WIEN: ‘This Chart Worries Me’

Corporate profit margins are at all-time highs. The stock market’s bulls and bears are willing to agree with this fact. But that’s about it. The bears are convinced that margins are doomed to mean revert. Among other things, they note that companies are no longer able to squeeze further productivity […]
BYRON WIEN: ‘This Chart Worries Me’
News

Walmart’s Employee Food Drive Reveals What’s Wrong With America

Yesterday, it was revealed that employees at a Cleveland Walmart are holding a holiday food drive for other Walmart employees. This situation says everything about what’s wrong with the U.S. economy right now. Walmart is one of the richest companies in the world. Walmart has a market value of $US260 […]
Walmart’s Employee Food Drive Reveals What’s Wrong With America
Markets

Here’s Why Rising Interest Rates Won’t Crush Corporate Profit Margins

Economists and financial market strategists continue to debate whether or not the current high corporate profit margins are sustainable. “I think margins may be peaking,” chimed in Blackstone’s Byron Wien this week. One of the most controversial sub-debates in the profit margin debate relates to low rates and how it […]
Here’s Why Rising Interest Rates Won’t Crush Corporate Profit Margins