Asks Carol Schleif about the market backdrop and her view that stocks will continue to climb over the year.
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Carol Schleif
Earnings have come in well. Consumers and companies remain resilient. Themes from last year (tax bill, deregulation) are supportive. Corporate focus on margins should amplify bottom-line growth.
Asks if the pressure on banks refers to the president's call for a cap on credit card interest rates.
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Carol Schleif
Banks will likely try to find a step that benefits consumers while preserving margins, given their strong revenue reports.
Asks if banker threats to restrict lending (e.g., to those with lower credit scores) is a broader economic concern.
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Carol Schleif
It is a concern, but the top 10% of consumers drive half of consumption and don't revolve credit. The issue is for the other 80-90% who do revolve credit.
Asks if her 7700 S&P 500 target is driven by earnings.
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Carol Schleif
Yes. 7700 is roughly 10-12% up from last year, matching expected earnings growth. Valuations are not expected to expand and may face pressure.