Eric Basmajian: Corporate profit margins reach record high as worker pay lags

Eric Basmajian: Corporate profit margins reach record high as worker pay lags
Profit margins hit record as pay lags

Eric Basmajian reports that corporate profit margins have hit 20.6 percent, marking the highest level on record.

At the same time, he observes that the typical worker's pay has stalled and dropped below its long-term trend. Basmajian analyzes the factors leading to this divergence and considers its potential consequences.

Basmajian has previously identified that both the worst and best quarterly stock performances typically take place during recessions, according to his analysis of historical market patterns. He has also stated that, among key U.S. recession drivers, only residential investment is currently contracting, as noted in a recent review of GDP components. These observations provide further context for his current assessment of corporate profits and worker pay.

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