Hearing and seeing are two different things. Analyst have stated that they expect profit margins to rise. Here is a graphic of that interpretation that will make your jaw drop.
“Let’s start off with a chart you’ve seen a bunch of times on these pages: It shows the record-high levels of profit margins, and the expectations among analysts that they’ll go even higher.
Click to enlarge.
The basic gist is that current bullish assumptions are based on a trend that at least taken at the simplest face value seems unrealistic.
Well, here’s another similarly jaw-dropping margins chart.
It shows the percentage of stocks that are assumed to be able to produce a margin expansion going into 2013.
Morgan Stanley
89% of companies are expected to expand their margins in 2013.
With fiscal and monetary tightening possible, is that remotely possible?
Perhaps not.”
If you enjoy the content at iBankCoin, please follow us on Twitter
