Best of Bloomberg Intelligence (05/16/2022)

The video discusses the rising margin pressures and recession risks in the stock market, highlighting that recession is nearly fully priced. It examines the impact of tighter interest rates and negative earnings expectations on valuations. The discussion also covers inflation's effect on S&P 500 expectations and the broadening of margin pressures across various sectors, particularly consumer sectors, due to faster-rising producer prices compared to consumer prices.

What does the fair value model suggest about the pricing of recession in the stock market?

• Recession is fully priced.

• Recession is underpriced.

• Recession is overpriced.

• Recession is not priced at all.

Which organization is trying to navigate a soft landing amidst inflationary pressures?

• European Central Bank

• International Monetary Fund

• Federal Reserve

• World Bank

What has been the trend in producer prices compared to consumer prices?

• Producer prices are decreasing while consumer prices are increasing.

• Producer prices are rising slower than consumer prices.

• Producer prices are rising at the same pace as consumer prices.

• Producer prices are rising faster than consumer prices.

Which sectors are experiencing the worst margin compression?

• Technology and Healthcare

• Consumer Staples and Consumer Discretionary

• Energy and Utilities

• Financials and Real Estate

How many major sectors in the S&P 500 are expected to report negative operating margins?

• None

• Six out of nine

• Nine out of nine

• Three out of nine