Citi's Chronert Says 5%-10% Pullback Would Be a Buying Opportunity

The video discusses the resilience of the equity market despite higher interest rates, highlighting the strong correlation between earnings and market performance. It predicts earnings growth for the S&P 500 in 2024, emphasizing the importance of free cash flow for financial flexibility. The video also addresses potential market pullbacks and the importance of maintaining strong fundamentals.

What is the highest correlation found between equity performance and its drivers over the long term?

• Bond yields

• Inflation rates

• Earnings

• Interest rates

What is the expected earnings growth for the S&P 500 next year?

• High teens

• Low teens

• High single digits

• Low single digits

Why is free cash flow growth considered critical?

• It guarantees higher dividends

• It increases stock prices directly

• It provides financial flexibility for various activities

• It reduces interest rates

What is the suggested market pullback percentage after a significant run?

• 11 to 15%

• 1 to 2%

• 3 to 4%

• 5 to 10%

What is the starting point for considering significant buying in the market?

• Low 4700 level

• High 4600 level

• Low 4000 level

• Mid 4500 level