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The Future of Corporate Profits

February 26, 2006

This diagram displays the future of corporate profits.

Profit margins are probably the most mean-reverting series in finance, and if profit margins do not mean-revert, then something has gone badly wrong with capitalism. If high profits do not attract competition, there is something wrong with the system and it is not functioning properly.
Jeremy Grantham

Please read the following important disclosure here.

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