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Goldman Sachs Says It May Be Forced to Fundamentally Question How Capitalism Is Working

The profit margins debate could lead to an unsettling conclusion.
Inside The Amsterdam Stock Exchange
Photographer: Jasper Juinen/Bloomberg

One of the most heated debates among investors is the question of whether corporate profit margins can maintain their elevated level, or whether they will inevitably revert to mean.

Here's a quick look at S&P 500-stock index profit margins, for example, going back more than 25 years. They remain high by historical standards.