U.S. Tech Sector Poised for Positive Surprises, Says Whittier Trust’s CIO

The video discusses current market sentiment, focusing on the potential impact of a US-China trade deal and the ongoing earnings season. Despite initial concerns of an earnings recession, early reports show positive surprises, particularly in the tech sector. The NASDAQ 100 is at record highs, but signals indicate it may be overbought. The tech sector's earnings have been revised lower, setting the stage for potential positive surprises. The market's forward PE ratio is higher than historical averages, but low interest rates make these levels sustainable.

What is the expected decline in earnings growth for the first quarter?

• More than 4%

• More than 6%

• Less than 2%

• Exactly 3%

What is the significance of the NASDAQ 100 hitting record highs?

• It suggests the market is overbought.

• It means the S&P 500 is outperforming.

• It shows the tech sector is undervalued.

• It indicates a market crash is imminent.

How are tech sector earnings expectations described?

• The highest in the market

• The best among all sectors

• The third worst group

• Average compared to other sectors

What is the current forward PE ratio for the entire market?

• 15.5

• 16.7

• 18.9

• 20.1

Why are current market valuations considered sustainable?

• Because of high interest rates

• Due to low bond yields

• Due to high inflation

• Because of a strong dollar