S&P 500 to Reach 5,000 in 2022, Federated’s Auth Says

The transcript discusses the deceleration of GDP from 2021 to 2022 and the bullish outlook on Wall Street. It highlights the need for significant GDP growth to return to trend levels and the impact of this growth on earnings, particularly for S&P companies. The discussion also covers market valuation, suggesting a fair multiple of 22 times earnings, which could lead to substantial market gains.

What is the general sentiment on Wall Street regarding GDP growth for the current year?

• Pessimistic

• Neutral

• Uncertain

• Bullish

What growth rate is needed to return to the GDP trend by the end of next year?

• 8-9%

• 4-5%

• 6-7%

• 2-3%

What is the significance of the cash reserves mentioned in the discussion?

• They are only held by individuals.

• They could significantly impact GDP growth.

• They are mostly spent already.

• They are irrelevant to GDP growth.

How does nominal GDP growth affect S&P companies?

• It has no effect.

• It decreases their earnings.

• It stabilizes their earnings.

• It increases their earnings.

What is the expected nominal GDP growth for the current and next year?

• Negative growth

• Double digits

• High single digits

• Low single digits