Nifty PE crosses 24|A statistically informed entry-exit model!

[Divyanshu_Bagga]

In general, no. You cannot make this claim for any company; they will not be able to protect the increased profitability forever. But if the business has a very strong moat, then perhaps yes, that is one possible way to justify current move.

Divyanshu's Portfolio

Tax cuts will not impact all businesses equally. Yes, it will raise profit margins, but that is also true of your competition, and if the company does not have competitive advantages, competition will eventually lead to passing the benefits to customers. One can argue that more money in the hands of consumers will boost demand, but that is only if the government also takes measures to control expenses, and hence, fiscal deficit. Otherwise we are just replacing corporate tax with inflation tax a…