Citi's Wieting Sees a Mild Extension of U.S. Profit Cycle

The video discusses the recent trends in company profits, highlighting the impact of the energy sector and the potential for a mild extension of the profit cycle. It explores the concept of secular growth, emphasizing innovation and financial engineering in non-cyclical sectors. The discussion contrasts financial engineering with genuine innovation, questioning its impact on business investment and long-term economic growth. Finally, it examines the cost of capital and its influence on investment decisions, particularly in the IT sector.

What has been the recent trend in company profits according to the video?

• A dramatic increase

• No change

• A slight growth after a period of high profits

• A significant decline

Which sector is mentioned as growing on a secular basis?

• Agriculture

• Automobile

• Retail

• Energy

What is questioned about recent financial transactions?

• Their effect on inflation

• Whether they are innovative or just financial engineering

• Their impact on employment

• Their legality

What financial metric is discussed in relation to company growth?

• Price to Earnings Ratio

• Return on Investment

• Weighted Average Cost of Capital

• Earnings Per Share

What is the potential benefit of new technologies and productivity discussed in the video?

• Reduction in taxes

• Immediate job creation

• Long-term economic growth

• Short-term profit increase