Expectations for the S&P 500 for Net Profit Margins

S&P 500 net profit margins are expected to fall to 11.4% below the 13% peak reach when the market was hitting its all time highs in late 2021. China, this supposed engine for global growth are suffering from deflation and they're stimulating. Over here, we've seen inflation come down a lot, but we are tightening. And if you ever wanted a reason to have stocks re-rate lower after this period of multiple expansion, it would be profit margins declining at a faster pace in a very uncertain domestic economy.