It remains 'dangerous' to underestimate Corporate America ⚠️
'The U.S. isn't exceptional, but Corporate America might be,' BofA said 🇺🇸
In November 2021, BofA’s Savita Subramanian first warned: “It’s dangerous to underestimate Corporate America.“
At the time, she highlighted Corporate America’s remarkable ability to maintain and even improve profitability despite intense headwinds from global supply chain disruptions and soaring inflation.
In what’s been arguably the most surprising business development of the current economic cycle, profit margins remained historically high throughout 2021, 2022, 2023, and 2024. And they’re expected to improve in 2025.
Robust profit margins have helped amplify earnings growth during this period, which in turn helps explain why the stock market has been setting record highs.
On Tuesday, Subramanian repeated her warning.
