Right now, corporate profits as a % of GDP are at a historical all-time high of around 11%. I have a couple of questions.
Will this figure not revert back towards the mean of 6%, be it through lower earnings or higher corporate taxes? (Higher corporate taxes would help to pay down the record levels of US national debt, around 120% of GDP)
What could it possibly mean for the US stock market overall?
What additional thoughts do you have on the subject?
Source: https://fred.stlouisfed.org/graph/?g=1Pik