HUSSMAN: Profit Margins Will Drop, Stocks Will Tank - Business Insider

HUSSMAN: Profit Margins Will Drop, Stocks Will Tank - Business Insider

"Fund manager John Hussman of the Hussman Funds has been hammering on what is probably the biggest risk to future stock performance:
The risk that today's record-high profit margins will fall, taking corporate earnings down with them.
Those who want stocks to keep charging higher have come up with a list of many reasons why it's "different this time" and today's profit margins will keep on increasing. These include:
Almost half of big corporate profits now come from international operations, so profit-to-US-GDP measures aren't meaningful.
The source of the high profit margins is efficiency and low labor costs, and those gains will continue (labor glut, high unemployment, etc.).
...Hussman doesn't do a lot of interviews. But he is one of the smartest and most methodologically-disciplined fund managers in the world."