Barclays Sees Trump Policies Pushing 2017 EPS Growth

The transcript discusses the impact of financial conditions on earnings per share (EPS) growth, with a focus on the S&P 500. Despite tighter financial conditions and a strong dollar, a rebound in EPS growth is expected in 2017, potentially reaching 7%. The market is performing well, with record highs anticipated. The discussion also covers the potential impact of President-elect Trump's economic plans, particularly tax cuts, which could boost EPS growth to 12%. The analysis highlights the variability in effective tax rates across companies and the need for more information to refine EPS forecasts.

What factors are expected to drive a rebound in EPS growth for the S&P 500 in 2017?

• Decreased inflation and lower GDP growth

• Lower wages and reduced financial conditions

• Increased inflation and nominal GDP growth

• Higher interest rates and stronger dollar

How is the current market condition described in relation to EPS growth predictions?

• The market is moving alongside the improvement in EPS growth.

• The market is declining despite EPS growth predictions.

• The market is unpredictable regardless of EPS growth.

• The market is stagnant with no relation to EPS growth.

What is the potential impact of President-elect Trump's tax plans on EPS growth?

• It could decrease EPS growth to 5%.

• It could increase EPS growth to 12%.

• It could have no impact on EPS growth.

• It could stabilize EPS growth at 7%.

What is the proposed change in the corporate tax rate under Trump's plan?

• From 40% to 30%

• From 35% to 15%

• From 30% to 20%

• From 35% to 25%

Why is it challenging to assess the impact of tax cuts on EPS growth for different companies?

• Because companies do not disclose their tax rates.

• Because all companies have the same effective tax rate.

• Because the effective tax rate varies widely by company and sector.

• Because tax cuts do not affect EPS growth.