That will mark an over 20% rally from Friday's close. Suffice to say, Deutsche Bank's forecast is quite bullish considering the uncertainty faced by the US economy and the current macro landscape. As a reminder, the firm has also penciled in a forecast last week for the Fed to start QE again in Q1 2026. Brrr... 💸💸💸
In Europe, they see the Stoxx 600 ending next year at 650 - which marks a roughly 15% rally from current levels.
As for growth forecasts, they see the US economy posting GDP growth of 2.4% next year with global GDP growth at 3.1%.
As always with these forecasts, it's not so much about the levels as they are almost always never accurate. It's more so about the shifts in the forecasts during next year that will be telling of the direction of market sentiment.
