corporate profits

No this column is not about sustainability, climate targets or Co2 emissions. But about the fable that energy companies are a reason why broad market profits need not fall.

Energy profits

Earnings-per-share of US energy companies included in the S&P 500 Index are up more than 250% from a year ago. But this does not disguise a fall in profits of the rest of the companies.

“As corporate profits are rising much faster than expected, high valuations in the equity market are falling fast. Equities therefore remain attractive,” said Natasha Ebtehadj, global equities portfolio manager at Columbia Threadneedle, in a recent conversation with Fondsnieuws, Investment Officer Luxembourg’s sister publication.