Wells Fargo’s Han Sees Market Cycle Shift as Fed Hikes

The transcript discusses the current state of the market, highlighting robust earnings growth despite supply chain issues and labor costs. It explores the impact of tapering and potential rate hikes, noting the shift from mid to late cycle. The role of liquidity and Fed policy is emphasized, with discussions on hedging strategies and market sentiment. The Fed's significant influence on the equity market is acknowledged, with a focus on real yields and the tech sector's challenges.

What has been the trend in earnings growth for S&P 500 companies despite supply chain issues?

• Earnings growth has been declining.

• Earnings growth has been stagnant.

• Earnings growth has been robust.

• Earnings growth has been unpredictable.

What economic phase is the market expected to transition into next year?

• Early cycle

• Mid cycle

• Late cycle

• Recession

How does the current market liquidity relate to the Federal Reserve's policy?

• Liquidity is high due to the Fed's accommodative policy.

• Liquidity is unaffected by the Fed's policy.

• Liquidity is irrelevant to the Fed's policy.

• Liquidity is decreasing due to the Fed's policy.

What is the current state of real yields in the United States?

• Real yields are positive.

• Real yields are negative.

• Real yields are neutral.

• Real yields are unpredictable.

What is the expected impact on the tech sector as real yields start to rise?

• Tech sector will thrive.

• Tech sector will face challenges.

• Tech sector will remain unaffected.

• Tech sector will decline rapidly.

What is the significance of the Federal Reserve's communication regarding their stance?

• It is crucial for market stability.

• It has no impact on the equity market.

• It only affects the bond market.

• It confuses market participants.

What is a potential contrarian indicator mentioned in the discussion?

• High market liquidity

• Decreasing unemployment

• Rising inflation rates

• Negative real yields