Best of Bloomberg Intelligence (01/26/2023)

The video discusses the current earnings season, highlighting a smaller-than-expected decline in S&P 500 earnings and the impact of CPI outpacing PPI on margins. It explores sector performance predictions, noting that cyclical sectors like financials and energy may outperform despite recession concerns. The discussion shifts to market pricing and the potential impact of Fed rate changes, emphasizing the role of sentiment in driving market trends. The video concludes with an analysis of sector reversals and their persistence.

What is the expected margin expansion after a CPI over PPI reading?

• 15 basis points

• 10 basis points

• 25 basis points

• 20 basis points

Which sectors are expected to outperform during the current earnings season?

• Real Estate and Telecommunications

• Consumer Goods and Utilities

• Financials, Energy, and Industrials

• Technology and Healthcare

What is the current expectation for the Federal Reserve's interest rate hike?

• 75 basis points

• 100 basis points

• 50 basis points

• 25 basis points

What is the market sentiment towards sectors that were punished in 2022?

• Investors are indifferent

• Investors are piling into them

• Investors see them as overvalued

• Investors are avoiding them

What is the likelihood of sector reversals persisting after underperformance?

• More than 75% of the time

• Always

• About 50% of the time

• Less than 25% of the time