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 view on Wall Street regarding GDP growth this year?

What growth rate is suggested to get back to trend by the end of next year?

What factors contribute to the earnings growth of S&P companies?

How much nominal GDP growth is expected this year and next year?

What is the fair multiple being used for earnings growth?