Do the impressive returns in public and private markets stem from strategic financial engineering or reflect actual economic growth? Topics covered include: How corporate profit growth is linked to economic growth, even though corporate profits are more volatile How interest rates, tax rates, and stock buybacks influence corporate profits and stock returns Why there are fewer publicly traded stocks How the increase in leveraged buyouts has impacted the economy How private … [Read more...]
429 Plus: Stocks and Inflation, Emerging Markets Bonds
In Plus episode 429, we consider how stocks perform during periods of high inflation by looking at the example of Argentina and a recent academic study on the topic. … [Read more...]
425: How Profits Motivate Change
"If something is profitable, it will be done," says Martin Wolf of the Financial Times. We explore how profits will drive the energy transition and how and where water from the Colorado River will be used. Topics covered include: How profits have led to higher energy market share for natural gas and renewal energy What is hindering a faster transition to renewables What is contributing to a water shortage in the southwestern U.S,. and how will it be resolved Why big … [Read more...]
219: The Incredible Shrinking Stock Market
How fewer publicly traded companies, fewer stock shares outstanding, and more intangible assets have led to higher earnings growth for U.S. listed companies and ultimately stronger stock market performance. In this episode you’ll learn: Why the number of publicly listed companies, particularly small companies, is shrinking. What is the impact in the increase in intangible assets held by businesses. What is the impact of share buybacks by global companies. How employer … [Read more...]
177: How Business Contributes To Income Inequality
How high profits and low investment by business in R&D and workers lead to income inequality. Why the current situation is unsustainable and what can be done about it. Photo by Oskar Krawczyk In this episode you’ll learn: Why isn't productivity improving as quickly as in prior decades. Why are profits too high. How does CEO compensation compare to what employee make. Why public shareholders don't actually own the company. What is the level of income inequality in … [Read more...]
105: How Corporate Profits Drive Stock Returns
What drives corporate profits over time and how do they contribute to long-term stock returns. In this episode you'll learn: What drove U.S. stock returns over the past thirty years. How long-term corporate profit growth has tracked per capita GDP growth.What contributes to long-term corporate profit growthWhat are the things corporates can do with their cash. Show Notes Research Affiliates - The Profits Bubble by Chris Brightman FactSet Earnings … [Read more...]
