Expect solid growth with less inflation this year, says BMO's Carol Schleif

Summary

Carol Schleif of BMO Private Wealth says earnings season has been solid, consumers remain resilient, and policy support from the tax bill and deregulation should lift corporate profits. She sees the S&P 500 reaching roughly 7,700, about 10-12% upside, driven by earnings growth. She also discusses political pressure on banks from a proposed credit card rate cap and says tighter credit could hurt lower-income consumers, potentially shifting some borrowing to buy now, pay later.

• Carol Schleif says earnings have come in well and companies are protecting margins.
• She expects the S&P 500 to reach 7,700, about 10-12% upside, on earnings growth.
• Deregulation is helping banks and supporting financial sector earnings.
• President Trump's proposed credit card interest rate cap creates political pressure on banks.
• Top 10% consumers are steady; lower-income consumers are more credit-sensitive.
• Tighter credit could reduce spending or shift borrowing to buy now, pay later.
• She says consumer companies heavily exposed to lower-income segments face concern.