S&P 500 Growth Reflects Gains in Productivity and Efficiency, Not Just Broader Economy
• S&P 500 reflects productivity gains and efficiencies, not just the broader economy
• Earnings growth being driven by gains in productivity and efficiency
• S&P makeup very different than in past, higher growth companies with strong secular tailwinds
• Valuations for S&P 500 justified given interest rates, earnings outlook and inflation outlook
• If Fed cuts rates more than expected, could see S&P 500 P/E expand to 23-24x