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Traders work on the floor of the New York Stock Exchange March 19, 2014.
Traders work on the floor of the New York Stock Exchange March 19, 2014.
(BRENDAN MCDERMID/REUTERS)

Goldman: Record profit margins aren’t going anywhere

One of the key bearish arguments for why the stock market rally is bound to come to a nasty end rests on profit margins: They’re at record highs and bound to come down, hitting corporate profits and making the stock market look expensive relative to earnings.

However, strategists at Goldman Sachs aren’t siding with the bears on this one. Operating margins returned to a peak of 8.9 per cent at the end of 2013. But rather than fall, the strategists see margins hovering at about the current level throughout this year, nudging to a new record high of 9 per cent in 2015.