Where Next for Profit Margins?
Our chart shows aggregate corporate profit margins for constituents of the S&P 500 and Euro Stoxx 50 indices. After a steady ascent from mid-2016, they started falling in late 2018/early 2019 in both the US and Europe. With tax cuts behind them, continued tightness in the US labour market, and already-implemented tariffs eating into margins, how will corporate bottom lines hold up this earnings season?
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