Markets Pricing In a Soft Landing, Barrett CIO Kong Says

The video discusses current market trends, highlighting the impact of the recent jobs report and Powell's comments on disinflation. Despite expectations of rising rates, the market is buoyed by a strong underlying economy, leading to a rebound in growth stocks, including tech. The conversation shifts to the market's pricing of an earnings recession, noting a soft landing scenario. Earnings estimates for Q1 2023 have decreased, yet the market continues to rise, with the S&P's forward PE ratio reaching 18 times. This raises concerns as the market approaches the upper bound of the bear market range observed last year.

What recent event has contributed to the markets turning higher?

• A new trade agreement

• The jobs report

• An increase in consumer spending

• A decrease in oil prices

What is the market's reaction to Powell's comments on disinflation?

• The market is cheering

• The market is indifferent

• The market is confused

• The market is pessimistic

What scenario is the market pricing in according to the second section?

• A hard landing

• A market crash

• A soft landing

• A rapid recovery

What has been surprising about the earnings estimates for Q1 2023?

• They have doubled

• They have decreased by 5 to 7%

• They have remained stable

• They have increased by 10%

What is the current forward PE ratio of the S&P mentioned in the third section?

• 25 times

• 20 times

• 18 times

• 15 times