Does Dow 20,000 Matter?

The video discusses the significance of the Dow hitting 20,000 and the focus on the S&P 500 for a broader market context. Predictions for 2017 include a 7% stock upside, with potential for 9% including dividends. Key drivers for earnings growth are improved domestic and international sales, despite challenges like a strong dollar and higher wages. Tax cuts could boost earnings growth to 12%, but tariffs and interest rates may strengthen the dollar, impacting earnings. A repatriation holiday could influence buybacks, though leverage limits further increases.

What is the primary reason the speaker focuses on the S&P 500 rather than the Dow?

• The Dow is not a reliable indicator.

• The S&P 500 includes a broader group of companies.

• The Dow is too volatile.

• The S&P 500 is more popular.

What is the predicted upside for stocks in 2017 according to the speaker?

• 7%

• 12%

• 10%

• 5%

Which factor is NOT mentioned as a driver for earnings growth?

• Rebound in sales growth

• Better growth abroad

• Increased government spending

• Higher domestic growth

How does a strong U.S. dollar affect company profit margins?

• It increases profit margins.

• It has no effect on profit margins.

• It reduces profit margins.

• It stabilizes profit margins.

What is the potential impact of tax cuts on earnings per share growth?

• Increase by up to 12%

• Decrease by 5%

• Remain unchanged

• Decrease by 2%

What is the speaker's view on the future of buybacks without a repatriation holiday?

• Buybacks will remain flat.

• Buybacks will decrease.

• Buybacks will become illegal.

• Buybacks will increase significantly.

What is the 'big wild card' that could affect buybacks according to the speaker?

• Repatriation holiday

• Interest rate changes

• Stock market crash

• New government regulations