DEUTSCHE BANK: Stocks can rally another 25%… but then get smoked

David Bianco and the equity strategy team at Deutsche Bank think there could be another big rally in stocks.

And then comes a big sell-off.

In their latest long-term update on the S&P 500, Bianco’s team argues that another 25% rally could be coming to the stock market that will last into 2018.

This rally, Deutsche Bank argues, would send the S&P 500 to near 2,500 from the 2,050 level it trades near right now.

After this rally, however, the party will end with the next bear market — defined as a 20% decline from highs — erasing all of the additional gains from this cycle.

Said another way, stocks will probably rally from here, and then after a few years end up right back where we are now or worse.

Enjoy it while it lasts, I guess.

Here’s the outline from DB:

Db 2

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