As U.S. corporate profit margins have made it to record highs, a debate has raged between those who place their hopes in the idea of a new paradigm and those who believe in capitalism’s efficiency and the consequent tendency of profit margins to revert to the mean. Notable amongst those pointing to high profit margins and their susceptibility to mean reversion include John Hussman, James Montier, Albert Edwards, Jeff Gundlach and Jeremy Grantham.
U.S. Corporate Profit Margins, A Bottoms-Up Analysis
