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"Equities Peak 12-18 Months After A Peak In Margins; We Are Now 15 Months After The Peak In Margins"
Submitted by Tyler Durden on 12/02/2015 - 19:30

http://www.zerohedge.com/news/2015-12-02/timing-drop-equities-peak-12-18-months-after-peak-margins-we-are-now-15-months-after

And while the economy is already feeling the recessionary impact of sliding margins as predicted in early October, with the manufacturing ISM printing at its lowest level since the recession, an even more important question is what happens to the stock market now that margins have peaked. On this topic, most have been mum with the usual "answer" being that margins will keep rising. Alas, as even Goldman recently showed they won't.

So assuming margins have peaked in this cycle, what does that mean for stocks? For the very simple answer we go to Credit Suisse according to which "equities peak 12-18 months after a peak in margins."

A couple of very important graphs and more at the link above...