The Future of Corporate Profits

This diagram displays the future of corporate profits.

The Future of Corporate Profits

This diagram displays the future of corporate profits.

Profit margins are probably the most mean-reverting series in finance, and if profit margins do not mean-revert, then something has gone badly wrong with capitalism. If high profits do not attract competition, there is something wrong with the system and it is not functioning properly.

Jeremy Grantham
The Future of Corporate Profits diagram

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