Edward Jones' Mahajan Sees 8%-9% Earnings Growth in 2022

The video discusses the current state of equity markets, focusing on liquidity changes due to fiscal and monetary policies. It highlights valuation compression and the resilience of earnings growth. The discussion covers GDP growth projections and sector performance, emphasizing value and cyclical sectors in the first half of the year and tech sectors later. The video also explores investment strategies in response to global yield changes and the role of bonds as a defensive asset in portfolios.

What has been a positive sign in the equity market despite valuation compression?

• Increase in speculative asset classes

• Decrease in fiscal policy

• Downward earnings revision

• Lack of downward earnings revision

Which sectors are expected to drive earnings growth in the first half of the year?

• Defensive sectors

• Speculative asset classes

• Growth and tech sectors

• Value and cyclical sectors

What is the expected GDP growth for the year?

• 2% to 3%

• 5% to 6%

• 3.5% to 4%

• 1% to 2%

How does the global yield environment affect investment strategies?

• It discourages investment in value cyclical names

• It only affects speculative tech assets

• It supports investment in value cyclical names

• It has no impact on investment strategies

Which sectors are expected to drive earnings momentum in the latter half of the year?

• Value and cyclical sectors

• Speculative asset classes

• Growth and tech sectors

• Defensive sectors

What is the role of bonds in a portfolio during equity market volatility?

• Bonds increase portfolio risk

• Bonds are only for short-term gains

• Bonds serve as a defensive hedge

• Bonds are irrelevant in volatile markets

What is the potential benefit of investment-grade and high-yield bonds?

• They are only for short-term investments

• They are highly speculative

• They offer no benefits

• They provide a defensive asset