SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Big Dog's Boom Boom Room

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jacob Snyder who wrote (156576)9/7/2011 3:40:03 PM
From: Jacob Snyder1 Recommendation  Read Replies (2) of 206085
 
Recession Watch: S&P500 profit margins:

seekingalpha.com

Trend in margins, tends to lead stock prices. So, we should have seen a fall in margins, before the market fell.

The other trend in margins, is a powerful Reversion To The Mean. That is, margins make a random walk within a range; they don't go up (or down) forever. Any move outside the historical range, should be expected to Revert. Examples would be early 2000, 2007, late 2008, and today. Any move below 4%, or above 9%, won't last long.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext