HSBC's Kettner Sees Plenty of Sectors to Support Market Broadening

The video discusses the economic momentum expected into 2025, highlighting that the US economy is maintaining a steady growth rate similar to the past two years. GDP growth expectations remain around 1.7-1.8%, with consensus believing these rates are temporary. Earnings expectations for Q4 are flat, with a potential drop if tech is excluded. The discussion suggests a broader market momentum, with sectors like industrials, healthcare, and banks showing value. The narrative emphasizes that while tech and the Mag 7 remain significant, other sectors are also poised to contribute to market growth.

What is the expected GDP growth rate for the first half of 2025?

• 1.7% to 1.8%

• 2.0% to 2.5%

• 3.0% to 3.5%

• 1.5%

How have earnings expectations been characterized for the upcoming reporting season?

• Rapidly declining

• Significantly increasing

• Pretty much flat

• Slightly decreasing

What is the potential impact on earnings if tech is excluded from the analysis?

• Earnings are expected to rise

• Earnings are expected to remain flat

• Earnings are expected to drop

• Earnings are expected to double

Which sectors are mentioned as having good value and potential for growth?

• Real estate and energy

• Industrials and healthcare

• Telecommunications and media

• Consumer goods and retail

What is the suggested market approach regarding tech and the Mag 7?

• Focus solely on tech

• Completely shift away from tech

• Include tech and diversify into other sectors

• Ignore tech and focus on small-cap stocks