The end of the era of optimisation
May 20, 2022
3 minutes
“The US market will lose its premium rating”
In recent decades, we have lived through an era of optimisation, which was enthusiastically embraced by American executives, in particular. Under the banner of delivering shareholder value, companies contracted out manufacturing to suppliers on the other side of the world, ran down inventories – operating instead on a “just-in-time” basis – and replaced equity funding with debt. Optimisation boosted the components that determine return on equity (ROE): corporate profit margins,
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