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Deutsche Bank Forecasts Wild 2026
30 Nov
Summary
- AI investment will continue to drive market sentiment and productivity.
- Markets may see sharp swings between boom and bust scenarios.
- US to re-accelerate growth, Germany poised for significant rebound.
Deutsche Bank is preparing clients for a dynamic 2026, predicting a year filled with both volatility and significant opportunities. The rapid advancement and adoption of artificial intelligence are expected to remain the dominant force shaping market sentiment, with the potential for substantial productivity gains.
Despite a broadly positive outlook for 2026, strategists caution that markets might experience sharp fluctuations between optimistic and pessimistic scenarios, underscoring the likelihood of persistent volatility. Notably, an ambitious year-end S&P 500 target of 8,000 has been projected, reflecting a highly optimistic view on US equities.
Economic forecasts indicate a re-acceleration of growth in the United States, supported by easing trade tensions and tax cut impacts. Germany is also positioned for a notable recovery, benefiting from newly implemented fiscal stimulus. While inflation is normalizing, it is not anticipated to return to pre-pandemic levels, with the Federal Reserve expected to implement limited interest rate cuts.
