The end of the beginning for the bull market

The current bull market may not be about to end but to borrow one of Churchill's lines we have surel...

The current bull market may not be about to end but to borrow one of Churchill's lines we have surely, at the very least, reached the end of the beginning. The first phase of this up-cycle has been characterised by strong top-line growth and stronger profit growth as company margins and returns on equity recover from what, with the benefit of hindsight, were frankly very depressed levels. In the second phase, with corporate profitability already at peak levels, profit growth will primarily be driven by economic growth, which in a low inflation environment is likely to be quite modest in n...