Underlying U.S. Economic Trend Is 1-2 %, Says Rosenberg

The transcript discusses the fundamental weakness in the US economy, highlighting policy mistakes by the Federal Reserve and non-recurring factors affecting GDP growth. It examines the impact of debt and interest rates on the economy, particularly in the corporate sector. The discussion also covers regulatory relief and its positive effects on market support and corporate earnings growth.

What were the two non-recurring factors that temporarily boosted GDP growth in the US?

• Increased consumer spending and tax cuts

• Drawdown of the savings rate and energy-related capital spending

• Government stimulus and export growth

• Technological advancements and infrastructure investment

How does uncertainty over tax reform affect capital investment?

• It discourages investment due to unclear future tax structures

• It has no impact on investment decisions

• It encourages more investment due to potential tax benefits

• It leads to increased investment in foreign markets

What is the potential impact of rising interest rates on corporate balance sheets?

• It leads to higher stock buybacks

• It has no impact on corporate finances

• It increases debt service costs, affecting capital spending

• It reduces debt service costs

What has been the effect of regulatory relief on companies according to the Competitive Enterprise Institute?

• Higher taxes for companies

• No change in compliance costs

• Reduced compliance costs, leading to financial relief

• Increased compliance costs

Despite slow GDP growth, what trend has been observed in the S&P 500 earnings?

• Volatility in earnings

• Strong earnings growth

• Stagnation in earnings

• Decline in earnings