Goldman's Kostin Expects Fewer Buybacks Next Year

The video discusses the impact of a strong dollar on US companies, highlighting that 70% of revenues are domestic, with tech companies being more affected due to overseas sales. It examines the role of corporate buybacks as a major demand source for US shares, predicting a decline in buybacks in 2023. The discussion also covers earnings expectations, noting potential declines in a recession scenario, and the challenges companies face with higher inflation and weaker margins.

What percentage of U.S. company revenues is generated domestically?

• 30%

• 90%

• 70%

• 50%

Which sector is most affected by foreign exchange adjustments due to its overseas sales?

• Telecom

• Utilities

• Technology

• Healthcare

What has been the single biggest source of demand for U.S. shares over the last decade?

• Foreign investments

• Pension funds

• Corporate buybacks

• Individual investors

By what percentage are corporate buybacks expected to decline in 2023 assuming a soft landing?

• 10%

• 5%

• 20%

• 40%

What is a potential source of demand that could partially offset the reduction in corporate buybacks?

• Government bonds

• Pension funds

• Real estate investments

• Cryptocurrency

What is the expected earnings growth for the fourth quarter before the earnings season began?

• Plus 10%

• Plus 7%

• Plus 3%

• Plus 5%

In a recession scenario, by what percentage could earnings potentially decrease?

• 15%

• 5%

• 7%

• 11%