Here is Why Wall Street is Optimistic About Profit Margins

“Overall, Wall Street’s strategists are bullish on stocks for 2013 for various reasons.

One reason worth taking a second look at is expanding corporate profit margins, which are already at historic highs.

A slew of experts like GMO’s Jeremy Grantham, SocGen’s Albert Edwards, LPL Financial’s Jeff Kleintop, and John Hussman think these margins are unsustainable.

But the equity analysts and the companies they cover disagree.

Here’s a chart from Goldman’s David Kostin showing the analysts’ forecast for S&P 500 margins next year:”

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