5 Charts of Investment Ideas

Five charts to help investors better understand where the best global investment opportunities lie

Dan Kemp 18 April, 2018 | 2:45PM

The relationship between sales and earnings is best illustrated via profit margins; earnings/sales. As you can see above, profit margins matter a lot and can be incredibly powerful in gauging the general state of corporate fundamentals.

All-World Fundamentals: Is it All About Profit Margins?

Currently, this is an issue to be wary of as global profit margins appear on the higher side of “normal”. While some may cite structural change via the move towards automation, perspective shows that this is potentially overhyped, margins did not expand structurally in the 1999 tech boom for example.

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About Author

Dan Kemp

Dan Kemp  is Chief Investment Officer, Morningstar Investment Management EMEA

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