The Fed, ETFs, Inflation, and Obesity Drugs (Podcast)
Bloomberg Intelligence
00:00
Morgan Stanley's Overstatement of Corporate Margin Growth
We tend to, and I think this is why we differ a fair amount from Morgan Stanley, is that we don't focus as much on corporate margins. Most companies like McDonald's, wherever they grow because they return earnings and actually open new McDonald's,. Like an existing McDonald's margins is going to be relatively flat. And then also you just get the growth from AI and from retained earnings. So I think it's easy to be too bearish about stock markets, because people don't realize that arithmetic of the reinvestment producing kind of automatic growth.
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