Some interesting reads that caught my eye from the week of February 15, 2015.
My telephonic interview with Cris Sheridan of Financial Sense where we discuss my article on U.S. Corporate Profit Margins and why are they likely to revert to their long-term mean.
We show the current and historical positioning of various market valuation tools and offer evidence suggesting U.S. market valuation is in the caution zone.
As U.S. corporate profit margins have made it to record highs, a debate has raged between those who place their hopes on a new paradigm of sustained high profits and those who believe in capitalism’s efficiency and the tendency of margins to revert to the mean. We show that an often-cited explanation for the new paradigm – that the U.S. economy is more service-focused – lacks empirical support.