Explaining the difference between the US and UK markets
You can sum up the difference between the US and UK stock markets over the last decade in two simple words: gross margins.A company’s gross profit is what is left over after the cost of goods sold (including raw materials, energy and some wages) are subtracted. Take this as per cent of total revenue and that is the gross margin. The S&P 500's average gross margin is around 33 per cent, while the FTSE 250’s is just 23 per cent. The US stock market gross margin is almost 50 per cent higher...