Inflation, Dollar Strength, and Faster U.S. Growth

The transcript discusses economic forecasts for 2017, highlighting expected inflation and growth rates. It examines the impact of potential tax reforms, corporate tax changes, and infrastructure spending on the economy. The conversation also covers the implications of a stronger dollar and the potential implementation of a border tax. The debate on how corporations will allocate capital, whether towards stock buybacks or productive investments, is explored. Finally, the transcript delves into market psychology and how CEOs might respond to competitive pressures and economic conditions.

What is the expected nominal growth rate mentioned in the discussion?

• 7%

• 6%

• 5%

• 4%

Which factor is contributing to the stronger US dollar according to the discussion?

• Decreasing oil prices

• Lower corporate taxes

• Increased government spending

• High and rising interest rates

What is the main concern regarding the use of increased cash flow by corporations?

• If it will reduce government debt

• If it will lead to higher inflation

• Whether it will be used for stock buybacks

• Whether it will increase unemployment

What term is used to describe the market's optimistic behavior?

• Bullish sentiment

• Investor confidence

• Animal spirits

• Market exuberance

How might competitive pressures influence corporate investment decisions?

• By encouraging more cautious spending

• By reducing market share

• By increasing interest rates

• By prompting earlier investments