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Dear Reader, One of the most unexpected stock trends of 2021 has been corporate America's ability to widen its profit margins despite a significant amount of adversity. Widespread inflationary pressures, higher wages, and the rising cost of goods sold are just some pressures that corporate America has been up against. Even in "normal" times, profit margins are difficult to maintain. It was not uncommon to see companies often lower prices in an effort to steal business from competitors. And with inflation rates continuing to heat up, it's particularly shocking to hear that analysts predict profit margins to continue even higher in 2022. According to recent data compiled by FactSet's John Butters, analysts expect the net profit margin for S&P 500 companies to climb to 12.8% in 2022, up from an estimated 12.6% in 2021. While that .2% doesn't sound huge on the surface, keep in mind that 12.8% would be the index's highest (annual) net profit margin since FactSet began tracking this metric in CY 2008. A big driver of these fat profit margins is pricing power. Or, another way to think about it is a company's ability to continue selling its goods and services despite raising prices. In recent quarters, executives have not been shy boasting about their companies' pricing power. Companies could be seeing some relief on the cost side as well. Even though Supply chain and inflation problems persist, improvements are being seen. On top of all this, the Federal Reserve signaled its intentions to accelerate the tightening of monetary policy, which should cool demand and reduce inflationary pressures. It'll be interesting to see if companies will actually deliver on profit margins, as they are critical for earnings growth, and earnings growth drives stock prices. It seems that the odds are stacked in their favor to produce significant returns in 2022. [image] Andrew Graham Editor, Silver Ridge Market Report P.S. Claim your free copy of [Unstoppable Prosperity]( now. This [free 279-page book]() reveals a time-tested, proven strategy that can help you capitalize on the generational opportunity available today to help you thrive in all stock market conditions. Silver Ridge Media and Silver Ridge Market Report are not giving individualized financial advice. Never invest more than you are willing to lose. Silver Ridge Media and Silver Ridge Market Report are not giving financial, investment, or stock advice. Our content is designed for generalized informational purposes only. If you have specific questions about investments or stocks you should consult a financial advisor. Articles, News, Or Other published materials are not always the views of Silver Ridge Media and Silver Ridge Market Report. If you feel you are receiving these emails in error please email Support@SilverRidgePro.com or click the unsubscribe button below. [Unsubscribe]( Silver Ridge Media 30 N Gould St, Ste R Ste R Sheridan, Wyoming 82801 United States