Investors have fled from US shares on a large scale in the past few weeks. Many observers warned of a crash, and occasionally warned of an impending bear market. During this time, analysts of Deutsche Bank were significantly less pessimistic for the stock market in overseas.
• US stock markets under pressure, while experts are becoming increasingly skeptical
• Deutsche Bank contradicts the crash scenarios
• Despite economic uncertainties, the bank expects a recovery in corporate activities
The wide US market index S&P 500 has lost around 3.51 percent since the start of the year. The tech value index Nasdaq Composite performed even worse: since January it has been downhill by more than eight percent.
A wide market depression makes experts skeptical
In addition to geopolitical factors in particular, the fact that US shares come under pressure in such a way is to owe in particular the customs policy of the new US President Donald Trump, which ensures massive uncertainty on the market, since the medium to long-term consequences are more than difficult. This uncertainty drives prices and could also have sensitive consequences for economic growth. As a result, not only US investors have had strong reluctance on the market and deducted part of their investments, experts are also increasingly skeptical about the US stock market.
One of these experts is Jeremy Siegel, who recently pointed out that the reporting season went well and that the balance sheets of companies would look good, but he sees uncertainty as the greatest risk factor on the market. The financial professor referred to “this disruptive, destructive, if I can say that, changing trade policy that really worries the market and ensured uncertainty among consumers and companies”. He emphasized that investors are possibly too optimistic about the development of interest and economic growth. “The market has priced in an almost perfect landing,” said Siegel, who warned that there are still not insignificant obstacles.
German bank analysts do not share this assessment
Such pessimism is apparently not shown at Deutsche Bank. Despite the recent decline in the US share prices, analysts from Deutsche Bank assume that the decline is neither a harbinger of a general economic flaut in the corporate sector nor an impending recession, as Forexlive reports, citing a customer announcement of the financial center. The market weakness could unsettle the managers, but the current conditions would differ from earlier swings that had been associated with more serious economic faults.
In this context, analysts of the bank referred to data that indicate that most companies have remained resistant despite increased economic uncertainty – and thus confirm the assessment of Siegel that it is still good at the company level. “Even if the market currently has justified concerns about the very high economic uncertainty, it is premature to predict a longer break in the company expansion,” quotes Forexlive from the customer notification. Deutsche Bank therefore adheres to its prognosis of a strong recovery in business in the further course of the year and also confirmed its expectation of a significant revival of the company expansion in the second half of 2025.
Editor finance.net