Levkovich Raises S&P Target to 2,425

The transcript discusses the expected rise in S&P 500 earnings, driven by factors like the energy sector and tax cuts. It highlights the impact of Trump's tax cuts on earnings and market valuation, noting the temporary nature of such fiscal policies. The speaker critiques the use of valuation metrics, emphasizing the influence of investor perception and historical trends. A review of 2016 performance is provided, with insights into sector performance and expectations for 2017.

What percentage of the S&P 500 earnings increase is attributed to the energy sector?

• 7%

• 5%

• 1%

• 3%

How much of the 2018 earnings improvement is expected to come from the Trump tax cuts?

• $9

• $11

• $7

• $5

What is the current forward price-to-earnings ratio of the S&P 500 mentioned in the video?

• 20

• 18

• 17

• 19

According to the speaker, what is the probability that markets will be higher in the next 12 months?

• 87%

• 85%

• 80%

• 75%

What was the speaker's self-assigned grade for their performance in 2016?

• A

• C+

• B+

• B

Which sectors does the speaker expect to continue outperforming in 2017?

• Consumer Goods and Utilities

• Technology and Healthcare

• Financials and Energy

• Real Estate and Industrials

What unexpected factor contributed to the small caps' performance post-election?

• Weaker dollar

• Stronger dollar

• Lower interest rates

• Higher inflation