Private Companies
No results found
- All News
- Articles
- Video
- Podcasts
FA Center
Big cuts in the federal deficit will almost certainly lead to a large reduction in corporate profits
Last Updated:
First Published:
Stock-market investors hoping that the so-called Department of Government Efficiency, or ”DOGE,” will dramatically reduce the U.S. budget deficit should be careful what they wish for.
That’s because there is a close correlation between the budget deficit’s share of U.S. GDP and corporations’ profit margins. A big reduction in the government deficit will almost certainly lead to a correspondingly large reduction in the corporate profit margin.
Partner Center
Most Popular
About the Author
Mark Hulbert is a columnist for MarketWatch. His Hulbert Ratings service tracks investment newsletters that pay a flat fee to be audited.
Intraday Data provided by
and subject to
Historical and current end-of-day data provided by
FACTSET. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.