Investor John Hussman has bad news. Corporate profit margins are at an all-time high, and bound to fall, he says. That’s going to crush profits and cause the market to drop. He’s makes a convincing case with charts and lots of historical data. He has a PhD.
Wharton professor Jeremy Siegel calculates profit margins a different way, totaling up the income of all businesses and partnerships, nor just corporations, and comes to a different conclusion. Margins aren’t that out of line at all. He thinks the Dow Jones could be on its way to 18,000. He makes a convincing case with charts and lots of historical data. He also has a PhD.
Who is right?
It depends how you feel about the market. If you’re bearish, you’ll side with Hussman, and use his analysis and credentials to confirm your views. If you’re bullish, you’ll follow Siegel, and use his insight to rationalize your feelings.
Top 5 Safest Stocks For 2014: Fluor Corporation(FLR)
Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.
- [By CRWE]