What Changes a Market Bull Into a Bear?

The video discusses the SMP target adjustment and market trends influenced by QE3 and deflation. It highlights the market's churning pattern and the role of earnings in 2017, emphasizing the need for global growth and a cautious Fed approach. The analysis covers sector performance, focusing on value vs. growth and the impact of yield curves. The shadow Fed funds rate is explored, noting its implications for rate hikes and sector earnings, particularly in financials and energy.

What was one of the main reasons for the stock market's performance in 2013?

• A significant increase in global oil prices

• A major technological breakthrough in the tech sector

• The introduction of QE3 by the Federal Reserve

• A decrease in interest rates by the European Central Bank

What is necessary for market gains in 2017 according to the discussion?

• Increased government spending

• Better global growth and a conscious Fed

• A decrease in global trade

• Higher inflation rates

What is the shadow Fed funds rate?

• A rate used exclusively for energy sector investments

• A rate determined by international markets

• The official interest rate set by the Federal Reserve

• An unofficial rate that reflects the effects of QE

Which sectors are expected to see earnings growth according to the discussion?

• Automotive and telecommunications

• Consumer goods and real estate

• Technology and healthcare

• Financials and energy

What condition is necessary for value to outperform growth in the market?

• A steeper global yield curve

• A rise in inflation rates

• An increase in consumer spending

• A decrease in global oil prices