Jeremy Grantham: Record High Profit Margins a Sign of Weakness for Stocks

“Profits have reached a record 11 percent of gross domestic product, which would normally make you bullish about stocks.

But not this time around, according to Jeremy Grantham, chief investment strategist of money manager GMO, The New York Times reports.

Much of the problem stems from the fact that companies are boosting their profits through borrowing money, he says. Corporations issued a record of more than $1 trillion of debt last year….”

Read more