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Podcast: All into Account
Episode: Equity Strategy: Three key drivers of to date resilient corporate profitability to turn weaker
Description: Speaker: Mislav Matejka, CFA - Head of Global Equity Strategy
Bulls are to a good extent basing their constructive market call on the premise that corporate profits are set to accelerate, supported by the bottoming out in activity indicators that is now in progress. However, the earnings reality might turn out to be the opposite as we move through the year. In aggregate, corporate profit margins are elevated in a historical context, and appear to be peaking out. The historical pattern where profit margins always start to move lower ahead of the next economic downturn is clear...