December/January 2018 6 7 Dispatches Contributors Letter From the Editor Letter From the Board 8 Why Are Corporate Profits So Dang High? Phillips Curve 12 You Get What You Measure Ivory Towers 14 Index-Fund Imbroglio 15 The Dividend Discount Model The Old Squirrel Policy 18 Would Policymakers Target Index Funds? 20 Reality Check 23 Americas Greater Europe Asia Behavior Gap Global Briefs 26 27 Spotlight More Moats, More Profits Margins are above historical norms. Here's why that might not completely change. 29 34 38 Do Vanguard and BlackRock Own Too Much of Corporate America? Passive Firms Take Active Approach to Stewardship 3