Corporate Profit Margins Could Stay Fat For A Long Time

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http://www.businessinsider.com/credit-suisse-profit-margins-stay-high-2013-3

Corporate profit margins are near historic highs, and analysts project they could go higher.

Most agree that these fat margins have come at the cost of the American worker. The unemployment rate is high and wages are low as companies squeeze their employees.

Here's a chart from Credit Suisse's Andrew Garthwaite that shows the inverse correlation between margins and wages.



Last week, Garthwaite cranked up his year-end target on the S&P 500 to 1,640 from 1,550. Among other things, he noted that he expects corporate profit margins to stay high.



Read more: http://www.businessinsider.com/credit-suisse-profit-margins-stay-high-2013-3#ixzz2OSOaaz00