Friday, March 4, 2016


Profit Margins Are About To Collapse The Most In The 21st Century

While companies continue to feel ever so generous when responding to the NFIB's survey, and increase raise intentions to boost wages with every passing month (just never this month) even they admit that it is impossible to pass through these wage hikes in the form of rising prices. 

As the chart below from JPM shows, the difference between "intentions to raise prices" less "intentions to raise wages" - a proxy for operating margins - has not been this negative in the 21st century.

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