Go to the Globe and Mail homepage

Jump to main navigationJump to main content


Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

Goldman: Record profit margins aren’t going anywhere Add to ...

Subscribers Only

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.

Report Typo/Error

Follow on Twitter: @dberman_ROB

  • S&P 500 INDEX
  • Updated May 26 4:44 PM EDT. Delayed by at least 15 minutes.

More Related to this Story

Next story