Stocks still have a lot of upside despite current downturn – Deutsche Bank’s Chadha

Deutsche Bank U.S. equity and global strategist Bankim Chadha sees substantial upside for the S&P 500, forecasting roughly 9–10% gains driven by stronger-than-reflected earnings growth and a gap between fundamentals and current market positioning. Chadha argues recent sector rotation out of mega-cap growth, tech and financials into the broader market is largely complete, which should support the index’s recovery. He also notes the market’s historical pattern of quick rebounds after sell-offs and resilience despite geopolitical and inflationary concerns. The view implies a bullish case for broader equities rather than a narrow mega-cap-led rally and suggests room for further inflows and price appreciation if earnings continue to surprise to the upside.