Smith concerned high corporate profits will have to revert to mean

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Global levels of corporate profitability are reaching worrying heights in the view of Baillie Giffor...

Global levels of corporate profitability are reaching worrying heights in the view of Baillie Gifford's Gerald Smith, manager of the Monks investment trust. Smith said pre-tax corporate margins in the US are at record highs and that this trend is being mirrored elsewhere in the developed world. "The past three years have been a fantastic period for equity markets and shareholders," he said. "But the current levels of corporate profitability are something I worry about more than anything else. "Figures from the Bureau of Economic Analysis show pre-tax corporate margins in the US are touch...