Last night's Iowa caucuses yielded more than a few interesting takeaways. Hillary Clinton was forced to flip six quarters to beat Bernie Sanders for the top spot, while Ted Cruz cruised to a first place finish in the GOP leaving Donald Trump scratching his head.
Here's a brief excerpt from Potomac Research Group Senior Analyst JT Taylor's Morning Bullets sent to institutional clients each morning.
"MARCO'S MAGIC NIGHT: The establishment has a heartbeat. And its name is Marco Rubio. In our opinion, Rubio pulled off the biggest victory of the night, stringing together an impressive close-third place showing led by late-breaking undecideds, as well a good share of evangelicals and new voters (thank you, Donald). Electability is the name of the game, and if Rubio can play in Iowa (they traditionally nominate the most conservative candidate who ends up fizzling out before the general election) then he'll play anywhere.
CAN RUBIO CONSOLIDATE ESTABLISHMENT LANE/MONEY -- AND FAST? With Bush, Kasich, and Christie all flagging, there will be growing pressure for them to step out of the race and throw their support behind Marco Rubio. New Hampshire may be an elimination round for Kasich and Christie so they must have a strong showing, but Bush still has enough cash to keep going for the long haul. It all depends on how New Hampshire shakes out -- calls for the also-rans to bow out will be far louder -- but the candidates will decide whether to exit on their own terms, not necessarily when it's most convenient for Rubio.
Republican moneyed circles will be anxious to see when Bush will drop out of the race. Big-ticket donors are practically throwing their money away out of loyalty to the family, and are waiting for the go-ahead to break. Just where will their dollars flow? Our money is on Rubio."