More than a decade ago, GMO strategist James Montier published a paper predicting that corporate profit margins were destined to come down from "nosebleed" levels. Fast forward to 2023, and it's clear that hasn't happened as profit margins remain far above their long-term average. On this episode of the Odd Lots podcast, Montier explains what he got wrong back in 2012, why corporate profits have remained so stubbornly high, and what this could mean for stock valuations now. He also discusses the ongoing debate over whether high corporate earnings are fueling inflation, as well as revisiting the work of economist Michael Kalecki.