A $490 billion investing firm is worried that record corporate profitability is unsustainable. Here’s its how it’s preparing for an 'inevitable' collapse.

There's evidence that something is wrong with profit margins, and MFS Investment Management is getting ready for a reckoning.

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.Corporate profit margins have been on an unsustainable growth trajectory and are now poised to unwind, according to Rob Almeida, the global investment strategist at MFS Investment Management.

Almeida and his colleagues are leery of the disconnect between record-high profit margins on one hand and average revenue growth on the other.growth has also lagged far behind the pace of profit-margin expansion — and it's a sign to them that something is wrong. For example, companies have been able to simultaneously maximize margins and keep shareholders happy by keeping their costs in check.

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