Citigroup’s Levkovich Boosts 2017 S&P 500 Target to 2,425

The transcript discusses the S&P 500 earnings forecast, highlighting a 9% increase driven by the energy sector and tax benefits. It examines the impact of Trump tax cuts on earnings and market valuation, noting the temporary nature of tax-related earnings. The speaker critiques valuation metrics, emphasizing the role of investor perception and historical bond-stock divergences. A performance review of 2016 is provided, with insights into future sector performance, particularly in financials and energy.

What is the expected contribution of the energy sector to the S&P 500 earnings increase?

• 5%

• 1%

• 3%

• 9%

How does the speaker view the valuation of tax-related earnings compared to operational leverage improvements?

• More valuable

• Equally valuable

• Not valuable at all

• Less valuable

What is the speaker's opinion on the five-year historical perspective of market valuation?

• It provides a clear view

• It distorts the real perspective

• It is irrelevant

• It is the only perspective that matters

What was one of the speaker's missed predictions for 2016?

• The rise in bond yields

• The decline in small caps

• The fall in energy prices

• The extent of the market rally

Which sectors does the speaker expect to continue outperforming in the future?

• Technology and healthcare

• Financials and energy

• Consumer goods and utilities

• Real estate and materials