Goldman's Kostin: Tax Hike Impasse Will Push Earnings Higher

The video discusses the current earnings season, highlighting that the equity market is near all-time highs with excellent earnings results. Despite supply chain issues, investors focus on revenues and earnings exceeding expectations, leading to improved margins. Companies are effectively passing input costs to consumers through price increases or technology. The discussion also covers potential tax hikes and their impact on future earnings forecasts, with a possibility of less severe tax increases than anticipated.

What is the primary focus of investors during the earnings season, despite supply chain issues?

• The resolution of supply chain issues

• The current GDP numbers

• Future market prospects and earnings performance

• The impact of inflation on consumer prices

How have companies generally managed their input costs during the earnings season?

• By halting investments in technology

• By cutting down on production

• By passing costs to consumers through price increases

• By reducing employee wages

What is a key takeaway from the earnings season regarding company performance?

• Companies have generally failed to pass costs to consumers

• Few companies have reported positive earnings

• Most companies have struggled with maintaining margins

• Many companies have successfully maintained operating leverage

What factor could lead to higher earnings estimates for the next year?

• A decrease in consumer spending

• No changes in corporate tax legislation

• A rise in inflation rates

• A significant increase in corporate tax rates

What is the expected range of earnings growth if no tax reform occurs?

• Between 2% and 5%

• Between 1% and 3%

• Between 2% and 7%

• Between 5% and 10%