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Business Optimism Crashes (EP.307)

Animal Spirits Podcast

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Bank of America's First Quarter Earnings

S&P 500 earnings revisions since Q1 are up 5%. Isn't this always the case though, where like earnings come in better than expected because they just sandbag and lowball? Do you ever see like 70% of companies missed expectations? I'm looking for it. It is dangerous to underestimate corporate America's margin preservation skills. These companies are really freaking good at making money. Goodbye, cost-cutting, hello productivity. Margin expansion from globalization and cheap financing is behind us but productivity gains can be the next multi-year bulk case for margins and multiples.

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