According to deutsche bank data, the bull market in US stocks is expected to continue until 2025 due to strong demand for stocks from investors and strong corporate activities such as buybacks and other expenses.

Binky Chadha, Chief Global Strategist at deutsche bank, has set a target price of 7000 points for the s&p 500 index in 2025, implying a 17% increase from the current level.

"We expect that strong stock (and bond) inflows will continue to be driven by strong risk appetite," Chadha said in a report to clients.

He wrote, "We expect buybacks by s&p 500 index component companies to increase from the current annualized $1.1 trillion to around $1.3 trillion next year, growing in sync with earnings. We believe that even with conservative estimates, the supply and demand background for US stocks remains robust, which will push the s&p 500 index to around 7000 points next year."

Due to the optimistic outlook for President-elect Trump's market-friendly policies, the s&p 500 index is expected to end 2024 with a strong performance.

The index hit a new intraday high on Monday, with a gain of about 5% in November and a roi of 25.5% in 2024 (excluding dividend reinvestment).

For 2025, deutsche bank believes that with the upcoming Trump administration possibly implementing tax cuts and deregulation, the US economy will show stronger growth.

Meanwhile, deutsche bank warned that Trump's protectionist trade and immigration policies may also threaten its bullish arguments. Deutsche Bank stated: "If the (Trump administration) intensifies its focus on radical trade and immigration policies, the major downside risks are more likely to emerge."

The bank stated, "This may be even more unfavorable for economic growth and raise inflation. This will lead to the Fed stopping the rate-cutting cycle, and could even consider a return to rate hikes, potentially putting upward pressure on bond yields.".

Deutsche Bank is not the first Wall Street bank to express optimistic views on the stock market outlook after the presidential election.

Recently, UBS Group indicated that the roaring twenties of the stock market will continue, with the S&P 500 index expected to rise again next year, reaching 7,000 points in the most optimistic scenario. Goldman Sachs predicts an 11% increase in the US stock market by 2025.

Editor/Rocky