Philip Grant on how Wall Street thinks the $1.9 stimulus bill is bullish for the economy and stocks

Owing to last week’s $1.9 trillion stimulus bill, economists at Goldman Sachs now pencil in a heady 8% year-over-year growth in fourth quarter GDP.  That would be the highest rate since 1951, when nominal annual output footed to about $350 billion, compared to about $21 trillion last year. 

Then, too, already-buoyant asset markets can expect another jolt, as suddenly flush retail hordes prepare to deploy their $1,400 check.  According to a late February survey from Deutsche Bank, respondents reported that they plan to allocate 37% of their stimulus payout into the market.  “Retail sentiment remains positive across the board, regardless of age, income or when the investor began trading,” wrote Deutsche Bank strategist Parag Thatte.  “Retail investors say they expect to maintain or add to their stock holdings even as the economy re-opens.”

~ Philip Grant, Almost Daily Grant's, March 15, 2021

Deutsche Bank economist Torsten Sløk on the Goldilocks economy

Boring is good, because boring means no uncertainties that are unmanageable.  This backdrop of no recession and stable growth and low inflation and low rates is bullish for risky assets, in particular equities.

~ Torsten Sløk, chief economist, Deutsche Bank, April 18, 2019

(Sløk was quoted in the April 20, 2019 issue of Barron's by Ben Levisohn in "The Trader" column.)

Josef Ackermann on advice from Greenspan (2007)

[Alan Greenspan's] position as one of the architects of the modern financial system gives him a unique perspective from which to help our clients make critical risk management decisions.

~ Josef Ackermann, Deutsche Bank Chief Executive, "Former Fed Chief Greenspan to Advise Deutsche Bank," Reuters, August 13, 2007