Weekly Impressions: US corporate profitability - The coming compression

Sam Ferraro

Global Founders Funds Management

Last year, Evidente published a report entitled The Dangers of Safety, which suggested that there had been an extended period of a rising equity risk premium. Since mid-2016, there has been a reversal of this trend, with the risk free rate moving higher and risk premium moving lower. In this post, Evidente suggests that a continued fall in the ERP will likely be associated with a revival of animal spirits in the US corporate sector, a long anticipated capital boom and ultimately compression of profit margins and the profit share in the United States from levels that are currently close to record highs. (VIEW LINK)


Sam Ferraro
Senior Portfolio Manager
Global Founders Funds Management

Managing Director of Global Founders Funds Management, Sam has over 20 years experience in financial markets, with Merrill Lynch, JBWere and Goldman Sachs.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.