Economists at Deutsche Bank expect further advances in equity markets in 2022, before a typical recession correction of 20% in late 2023.

Expecting further advances in 2022

“We maintain our year-end 2022 targets for S&P 500 at 5250 and STOXX 600 at 550.”

“We see some but limited impacts on European earnings from the Russia-Ukraine war, and multiples recovering.”

“In 2023, we expect equity markets to hold up well through the summer before the US falls into recession. This should see equities correct by a typical 20% as it begins, before bottoming half-way through and recovering prior levels.”