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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: RealMuLan who wrote (71276)11/16/2007 2:57:21 PM
From: Archie Meeties  Read Replies (1) of 116555
 
Corporate profits have been growing since...well, since the late 70's with just a few quarters of contraction thrown in. Perhaps you're thinking of the rate of change of growth? That did drop after the tech bubble, and is now coming back (well until this quarter probably).

The graph on the right captures that data

public.deloitte.com

Also, as I'm sure you are aware, the input costs of labor and raw material varies greatly from company to company. For example, in airlines it is around the number you mentioned, but for software design and many other tech, raw materials are in the low single digits. They are mostly beneficiaries of commodity increases as finding commodities is increasingly a tech driven process. For example, many of the new oil and gas discoveries in the old US fields are because of the heavy use of computing and modeling based on enriched seismic data.

But this is debating the past, the future I'm sure will hold many new surprises.
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