David Bianco Lists 8 Differences Between Stocks And The Economy

It can’t be reiterated enough that U.S. stocks and the U.S. economy don’t tell the same story.

David Bianco, Deutsche Bank’s Chief U.S. Equity Strategist, often points to these differences when he frames calls on the stock market.

“S&P 500 globalization accelerated in the past decade, further increasing the differences between US GDP and the S&P 500,” he writes.

Here’s a breakdown of eight big differences.

david bianco

Photo: Deutsche Bank

Lately, Bianco has had a bearish slant in his research calls.  As expected, this bearishness does not translate evenly into bearishness towards the U.S. economy.

“This soft patch is worse for S&P EPS than it is for US GDP given its global nature and raises risk of a deeper S&P 500 dip,” wrote Bianco in his latest not to clients.

He currently expects the S&P 500 to fall 5 per cent from here before rallying into the end of the year.

Here’s a chart breaking down the geographic mix of S&P 500 profits.  Bianco submitted this chart to Business Insider when we asked him for the most important charts in the world.

david bianco

Photo: Deutsche Bank

Bianco currently expects the S&P 500 to end at 1,475 by the end of the year.

SEE ALSO: The Most Important Charts In The World >

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