How Much Higher Can the S&P 500 Go?

How Much Higher Can the S&P 500 Go?

Assessment

Interactive Video

Business

University

Hard

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The video discusses the historical and current relevance of the AD line, particularly in relation to the S&P 500's recent record-setting performance. It highlights a divergence between the S&P 500 and the cumulative AD line, suggesting potential market strength discrepancies. The video also compares NYSE stocks with tech stocks, noting the absence of major tech companies in the NYSE. It questions the applicability of traditional market metrics in today's economic environment, characterized by quantitative easing and low interest rates. Finally, it addresses the unusual timing of upward revisions in S&P forecasts for 2022 by major financial institutions.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the advanced decline (AD) line used to measure?

The average stock price of the NYSE

The cumulative total of advancing and declining stocks

The total market capitalization of the S&P 500

The number of new stock listings on the NYSE

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might the NYSE not include big tech companies like Apple and Microsoft?

NYSE focuses on international stocks

NYSE has stricter listing requirements

NYSE primarily lists older line companies and value stocks

Big tech companies prefer to list on smaller exchanges

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential reason for the shift back to big tech investments?

Increased government regulations on tech

Higher interest rates

New tech innovations

Decline in value stocks performance

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do smaller companies benefit in the current economic climate?

They benefit more from government spending

They have lower tax rates

They receive more government contracts

They are less affected by global trade issues

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is unusual about the timing of the S&P forecasts for 2022?

They were released earlier than usual

They were delayed due to market volatility

They were only released by smaller firms

They were more pessimistic than expected