Do you think that the high Operating Margins will hold in 2014?
The major drivers for the high Operating Margins in 2013, viz. productivity, technology and cheap imports, should help again next year. Other factors like cheap energy and lower effective tax rates should continue to help as well. Plus, we do not see excesses in business investment, inventory or debt (personal or commercial) in 2014.
Persistently high profit margins should help equities in 2014.
