Ancors' Sowerby Sees 20% Growth in 'Crescendo of Earnings'

The video discusses the current state of earnings growth, highlighting a 20% year-on-year increase and potential peak profit margins. Despite trade turmoil, companies maintain healthy cash flow margins, suggesting market resilience. Active investors are advised to focus on companies with high free cash flow and shareholder value, especially in small and mid-cap stocks, to outperform in a challenging market.

What factors should investors consider when looking for companies that can sustain their margins?

What opportunities does the text suggest exist for mid and small cap stocks?