1.US Corporate Profit Margins
-tech has found a new higher plateau
-non-tech has trended up over time
Thank you đ
-lower interest rates
-lower tax rates
-higher productivity
-higher share of global revs
2.One reason for US equities outperforming Global equities for much of the past 10-15 years has been the consistently higher profitability
US RoE out-punches the rest.
3.The Great Deleveraging
Thanks to scars of the financial crisis spurring folk to be more prudent with debt and of course â more-to-the-point: the dream run in stocks and property on the asset side...
US household leverage (as measured by debt as a % of assets) has dropped to multi-decade lows.
Who da thunk it.
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