Stocks Forgo $5 Trillion on Trade Clashes, Deutsche Bank Says
- Deutsche Bank derives forgone gains from 10-year market trend
- S&P 500 stuck for 17 months, coinciding with trade tensions
This article is for subscribers only.
President Donald Trump’s raging trade war may have prevented U.S. equities from adding as much as $5 trillion, Deutsche Bank says.
That’s how much stocks could have gained if the S&P 500 Index had kept its 12.5% annual pace of appreciation since 2009, according to strategists led by Binky Chadha. And it equals to a forgone return of 17%, based on the current market capitalization. But the equity measure has made little headway since the Trump administration swung into action on trade in January 2018.