Citi's Levkovich Sees 2019 Markets Rise on Lower Earnings Expectations

The video discusses the U.S. equity market outlook, highlighting changes in market predictions since September. Initially, a 70% signal indicated a weakening market, but recent data shows a 90% probability of a higher market in 12 months. Earnings expectations for 2019 were overly optimistic, with initial estimates of 12% growth now revised to under 9%. The video also addresses the impact of wage pressures and pricing power on company margins, suggesting that while wage growth may increase, companies are likely to maintain pricing power to protect margins.

What was the anticipated S&P 500 level for the end of 2020 according to the strategist?

What is the primary sentiment metric mentioned, and how did it change?

How did the earnings growth expectations change from September to the current view?

What factors contributed to the risk of high earnings estimates in 2019?

What are the implications of wage pressures on the market according to the strategist?