BMO's Ablin Says Earnings, Not Taxes Push 3% Growth

The video discusses the political and economic landscape, focusing on Senator Corker's stance on deficit and tax reform. It highlights the challenges Republicans face in passing legislation and the need for Democratic support. The impact of tax reform and earnings on market performance is analyzed, with a focus on small caps and the Russell 2000. The economic outlook is discussed, considering the effects of recent hurricanes on earnings forecasts and the potential for future growth.

What is Senator Corker's known stance on the deficit?

• He supports a moderate increase in the deficit.

• He is indifferent to deficit changes.

• He opposes any increase to the deficit.

• He supports increasing the deficit for economic growth.

Why might Republicans need Democratic support in the Senate?

• To ensure the bill is not filibustered.

• To avoid a presidential veto.

• To gain enough votes due to internal party divisions.

• To pass a bill that requires a supermajority.

What has been the recent trend in small caps according to the discussion?

• They have remained stable.

• They have been highly volatile.

• They have seen a significant rally.

• They have been declining steadily.

What factor is considered a 'one-off' in the economic discussion?

• The influence of the yield curve.

• The role of small caps.

• The effect of earnings on the market.

• The impact of tax reform.

How have analysts adjusted earnings growth projections for Q3 and Q4?

• They have decreased projections for both quarters.

• They have increased projections for both quarters.

• They have decreased for Q3 and increased for Q4.

• They have increased for Q3 and decreased for Q4.