Gains in corporate profits depend in large part on accelerating global economic growth.
Sentiment: POSITIVE
Sometimes it takes longer to create value, but if the companies generate more earnings, the stocks will ultimately reflect that.
We have seen economic growth. But we have not seen earnings growth.
When we acquire businesses in the developing world, we estimate if the growth opportunities are strong.
Be true to yourself, and, um, don't worry about some large companies' quarterly profit index.
Higher productivity enables companies to increase sales without adding workers. Even if job markets tighten and wages rise, corporate profits can continue to climb as long as worker productivity is growing faster than overall wages.
Globalization and free trade do spur economic growth, and they lead to lower prices on many goods.
But in the past, US companies have been able to increase their profits through downsizing in the US, through colonizing other people's resources, and through the increase of globalization.
We've grown from 18% of the profits of the top 25 companies in our industry to 23% of the profits of the top 25 companies in our industry over the last five years. Profits are up over 70%, where the industry profit is up about 35%. Pretty good.
The key to revenue growth is tax reform that closes loopholes and that is pro-growth. Then with a growing economy, that's where your revenue growth comes in, not from higher taxes.
Growth and profit are a product of how people work together.