Deutsche Bank's Chadha Says S&P 500 to Rally Above 4,250

The video discusses the current earnings season, highlighting that the equity market typically rallies during this period, with a potential rebound in earnings due to macroeconomic drivers like growth upgrades and a weaker dollar. It warns against overly pessimistic forecasts, noting that earnings often beat expectations. The discussion shifts to potential recession risks, emphasizing the importance of differentiating between goods and services. Services have been rebounding, while goods remain elevated above trend levels. The key question is whether the economy will grow or crash as it returns to trend levels.

What is the typical percentage rally in the equity market during earnings season?

• 3-3.5%

• 2-2.5%

• 1-1.5%

• 4-4.5%

Which macroeconomic factor is NOT mentioned as contributing to a potential earnings rebound?

• Growth upgrades in Europe

• A stronger dollar

• Growth upgrades in China

• Growth upgrades in the US

What is the historical average earnings beat percentage?

• 6%

• 5%

• 4%

• 3%

What is the bottom-up consensus forecast for the earnings season?

• Up 5%

• Down 7%

• Up 10%

• Flat

Which sector is described as having been resilient and not prone to recessions?

• Services

• Retail

• Technology

• Manufacturing