Profit Margins

Are New Valuation Methods Valid?

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Some investors believe in maintaining the use of old models because they have historical precedence; new ideas can be risky to try. One example which comes to mind is when the 1990s tech firms were valued based on eyeballs instead of earnings. Believing in new models can easily turn into…CONTINUE READING

Record High Profit Margins Might Not Mean Revert

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S&P 500 profit margins are a pivotal topic to discuss when forecasting the overall market’s direction. It’s traditionally thought that margins are cyclical and mean reverting metrics. This means they go up and down. When they go up, it’s expected they will fall and when they go down, it’s expected…CONTINUE READING