November values rise as equity emotions run high

November's across-the-board increase in equity values was an emotional rally rather than one based o...

November's across-the-board increase in equity values was an emotional rally rather than one based on improved company earnings, believes Insight Investment's director of fund and manager selection, Patrick Armstrong. Analysts are currently predicting profit margins for 2005 that are greater than at any point in the last decade. The highest level reached by company profit margins during the past 10 years was 6.42%. Many analysts, however, predict that margins will go as high as 7.4% in 2005. "There is far too much optimism out there at the moment," Armstrong says. "The profit margins th...