Newedge's Dawson Sees More Downside Earnings Adjustments

The video discusses the potential for market rallies without bank involvement, focusing on the role of liquidity and Fed easing. It compares past instances of Fed easing, noting that while it supported markets in 2016 and 2018, it was insufficient during downturns like the 2000s and 2008. As April approaches, the video highlights the start of earnings season, particularly for banks, and anticipates adjustments reflecting recession risks and credit contraction.

What is the expectation regarding liquidity's role in supporting the market?

• It is hoped to support the market as it has in the past.

• It will cause a market crash.

• It will have no impact on the market.

• It will definitely lead to higher asset prices.

In which years did Fed easing successfully support the market without a recession?

• 2010 and 2012

• 2005 and 2007

• 2016 and 2018

• 2000 and 2008

What was the outcome of Fed easing during the 2000s and 2008?

• It was enough to prevent earnings declines.

• It caused a recession.

• It led to a significant market boom.

• It failed to offset earnings declines.

What is expected to happen during the upcoming earnings season?

• Earnings will be adjusted upwards due to economic growth.

• Earnings will be adjusted downwards due to recession risks.

• There will be no change in earnings.

• Earnings will increase significantly.

Which sector is expected to start the earnings season?

• Retail

• Banks

• Healthcare

• Technology