Deutsche Bank targets S&P 500 to 7,000 by the end of 2025

Deutsche Bank chief global strategist outlook for the benchmark US equity index:

S & P 500 to rise as high as 7,000 year-end 2025

• “We see S & P 500 buybacks rising from an annual run rate of $1.1 trillion currently to about $1.3 trillion next year, rising in line with earnings.
• We see the demand-supply backdrop for U.S. equities remaining solid even with conservative assumptions, pushing the S & P 500 to around 7000 next year.”
• sees stronger US economic growth due to potential tax cuts and a deregulation push under the incoming administration

Caveats:

• “main downside risks are more likely to emerge if greater weight is put on aggressive trade and immigration policies”
• “could be more negative for growth and push up inflation.”
• would lead the Fed to cease its interest rate cutting cycle
• Fed could possibly contemplate restarting rate increases

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There you go, a couple of scenarios to watch out for.

S&P 500, 7000 is off the charts! Well, this one anyway:

This article was written by Eamonn Sheridan at www.forexlive.com.