'Low Frequency' Fundamentals Dim Stock Market Outlook

by: John Hussman

Excerpt from fund manager John Hussman’s weekly essay on the US market:

The current, elevated level of earnings is based on unusually wide profit margins, which historically have not tended to persist. The reason for the wide profit margins is the low share of revenues being paid as wages and salaries. That's beginning to change. Real wages represent amount of “real