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Pastimes : All Clowns Must Be Destroyed

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To: pater tenebrarum who wrote (14719)3/6/2000 9:02:00 AM
From: fut_trade  Read Replies (1) of 42523
 
...Lehman sees further margin growth

biz.yahoo.com

--``Technology affects profit margins by driving down costs in other ways,' Applegate said in a research note. ``Globalism improves margins by allowing companies to source and produce globally while taking advantage of lower labor costs and new addressable markets.'

--Lehman also said changes to the S&P index affect margins for the stock market.

``As index composition further evolves, inferior business models will exit the S&P 500 as superior business models enter,' Applegate said.

Heinz, I'm having a problem accepting these words. If profit margins are expanding, why did the Nasdaq go from positive earnings to negative earnings in the last year? If these negative earning companies drop out as he suggests, will there be enough positive earning companies to support the investment capital in the markets? Why must they emphasize future growth so much without explaining current problems like expanding margin debt, inflation, raw speculation in negative earning companies.
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