What Will Drive Markets in 2017?

The video discusses the market outlook with S&P price targets for 2017 and 2018, considering the impact of the Trump agenda on corporate earnings, inflation, and GDP. It analyzes the potential changes in earnings and PE ratios, highlighting the transition from monetary to fiscal stimulus. The challenges of implementing fiscal policies, such as tax deals and infrastructure spending, are also explored.

What is the expected S&P price target for the end of 2018?

• 2350

• 2000

• 3000

• 2600

Which factor is considered a major driver of corporate earnings under the Trump administration?

• Stronger dollar

• Corporate tax reform

• Higher interest rates

• Increased inflation

What is expected to happen to PE ratios under the Trump administration?

• They will fluctuate unpredictably

• They will decrease

• They will remain stable

• They will increase

What type of stimulus is the market expected to transition towards under the Trump administration?

• Fiscal stimulus

• Supply-side stimulus

• Monetary stimulus

• Quantitative easing

What is a potential challenge in implementing fiscal stimulus under the Trump administration?

• Unpredictable consumer behavior

• Opposition from international markets

• Difficulty in passing tax reforms

• Lack of support from the Federal Reserve