James Montier of GMO: Corporate Profit Margins To Fall

A new report from Grantham Mayo van Otterloo (GMO) entertains a startling conclusion. The report is on the level of corporate profit margins in today’s economy and seeks an explanation to their height. Profit margins for corporations are at an all time high in a data set that extends back to the nineteen fifties. ValueWalk analyzed this issue recently, based on similar research from Oppenheimer. The report, though complex in its analysis, is simple in its conclusion. The report suggests that the height of profit margins at this time will be balanced out in the future by much lower returns. That conclusion…