The Most Important Thing For Investors To Focus On Right Now Is Not Earnings – It’s Margins | Value Investing News

The Most Important Thing For Investors To Focus On Right Now Is Not Earnings – It’s Margins

  • So I think a lot of people who are using earnings-based measures don’t really understand this that well, that if you’re using an earnings-based PE to ratio, what have you, you have the embedded assumption that profit margins are going to remain at record highs indefinitely, that there will not be any reversion in those.
  • So corporate profits margins are only so high because labor has been getting a much smaller share than they ever have historically.
  • So now labor is essentially revolting, through politics.
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