Three Must-See Charts of the 2Q Earnings Season

The video discusses the S&P 500's earnings season, highlighting the strong performance of earnings growth and its implications for stock prices. It examines the relationship between cyclical and defensive sectors, noting that cyclicals are currently outperforming. The video also explores capital expenditure trends, emphasizing that it is a lagging indicator. The discussion concludes with a brief mention of Amazon's developments.

What was a significant factor contributing to the strong earnings growth in 2018?

• Tax reforms

• Technological advancements

• Higher interest rates

• Increased consumer spending

What does a positive yellow bar indicate in the context of cyclical and defensive sectors?

• Cyclical sectors are growing faster

• Defensive sectors are growing faster

• Neither sector is growing

• Both sectors are growing at the same rate

What is the expected trend for cyclical sectors compared to defensive peers through 2019?

• Cyclical sectors will outperform

• Cyclical sectors will underperform

• Defensive sectors will outperform

• Both will perform equally

How is capital expenditure typically characterized in economic cycles?

• As an irrelevant indicator

• As a lagging indicator

• As a leading indicator

• As a coincident indicator

What risk is associated with capital expenditure if revenue growth does not keep pace?

• Higher stock prices

• Increased market share

• Improved earnings growth

• Margin pressures