On the Margin

(1) Puzzle: Why are analysts cutting their earnings estimates but not their revenues estimates? (2) Lots of good reasons why profit margins might be getting squeezed. (3) Analysts are natural-born optimists. (4) S&P 500 forward revenues at record high, while forward earnings are sliding from recent record high. (5) Wage version of Phillips curve making a comeback finally. (6) Pricing power isn’t what it used to be back in the 1970s and 1980s. (7) Corporate managements took an oath after “Trauma of 2008” to keep their profit margins high. (8) Forward profit margins looking toppy for the S&P 500 sectors. (9) Tech’s profit margin stands out because it is outstanding.