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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

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.