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Markets Edition: A Structural Bull Case for the S&P 500

Research @ Citi

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Evolving Dynamics of the S&P 500: Growth Orientation and Financial Flexibility

This chapter explores the transition towards growth-oriented sectors within the S&P 500, focusing on the financial flexibility of leading growth companies fueled by increased free cash flow. It also highlights the impact of enhanced productivity and EBITDA margins on technology advancements and corporate governance, contributing to higher sustained valuations.

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