Wither corporate profits? Margins shrink for first time since 2020 in third quarter

Wither corporate profits? Margins shrink for first time since 2020 in third quarter

Okay, at some point in 2023 or 2024, we get a big rally stock market when the Federal Reserve ends its current cycle of interest rate increases. And then what? The biggest reason to believe in modest stock market gains in any post-bounce Bull Market is the strong possibility that corporate profits will slip from their near-record highs. Today, the Commerce Department reported that after-tax profits as a share of gross value added for non-financial corporations, a measure of aggregate profit margins, shrank in the third quarter to 14.9% from 16.2% in the second quarter.