High inflation threatens to end a decade of improving profitability for U.S. companies, but these companies are bucking the trend.
Decades of deflationary forces that helped feed booming prices for U.S. stocks are over, at least for now.
During a recent interview, Kimball Brooker, a portfolio manager at First Eagle Investments in New York, said this success came “to a degree, at the expense of labor.” With large increases in wages at a time of high inflation for supply costs, the ability to raise prices is critically important for companies to maintain profit margins.
Brooker said corporate gross margins can “give us a clue about the flexibility of a business. The gross margin mainly reflects the direct costs. The higher the margin, the more flexibility a business has to compete and remain reasonably profitable in an absolute sense.”
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Wholesale prices surge 1.4% and point to high U.S. inflation through the springThe cost of wholesale goods and services jumped in March largely because of more expensive gas and food, signaling that U.S. inflation is likely to stay near a 40-year high through the spring.
Leer más »
CPI inflation hits 40-year high; how you can save money on essential itemsThe U.S. Department of Labor said Tuesday its consumer price index jumped 8.5% in March, the sharpest year-over-year increase since 1981.
Leer más »
EXPLAINER: Why US Inflation Is so High, and When It May EaseBack in December 2020, the Fed’s policymakers had forecast that consumer inflation would stay below their 2% annual target and end 2021 at around 1.8%.Yet after having been merely an afterthought for decades, high inflation reasserted itself last year with brutal speed.
Leer más »
UK Inflation Hits 30-Year High of 7% as Energy Prices SurgeU.K. inflation came in at an annual 7% in March, its highest since for 30 years.
Leer más »
GBP/USD rallies and approaches 1.3100 on high UK-US inflation dataThe British pound rallies and recovers substantial ground, in the North American session, amidst an upbeat market mood, despite continuing fighting be
Leer más »
Here Are Some Smart Money Moves to Make Now Amid High Inflation, Rising Interest RatesAs consumer prices soar and the Federal Reserve is poised to raise interest rates, consumers should rethink their strategies for their credit cards and savings.
Leer más »