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Where is the Crash?

The Compound and Friends

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The Rise and Fall of Profit Margins

The big thing about that GMO's Bear case was profit margins being a mean reverting series. And I think one of the reasons, so we're looking at a chart of profit margins, excluding financials, going back to the 70s. For the past 20 years, it's basically been up until the right. But is this a story of more efficient corporations? Or is it a story of the makeup of the S&P 500? Well, or both?

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