Subject: FW: US Equity Insights - 2017 S&P Outlook: Up...Financials led From: Stewart Oldfield Date: Wed, 07 Dec 2016 08:39:27 -0500 To: Richard Kahn Bcc: From: David Bianco, Deutsche Bank Sent: Friday, December 02, 2016 6:30 AM To: Stewart Oldfield Subject: US Equity Insights - 2017 S&P Outlook: Up...Financials led Deutsche Bank - Equity Research - North America US Equity Insights - 2017 S&P Outlook: Up...Financials led 02 December 2016 (114 pages/ 6655 kb) Download the complete report: http://pull.db-gmresearch.com/p/2042-5D5D/- 241776956/0900b8c08c22349e.pdf Trumponomics: Core policies very bullish, but some executive action tail risk Republican sweep economic policies will be more about deregulation and tax cuts than protectionism or huge spending. We think so because big actions require legislation, which Congress will shape. This Congress is likely to resist surging deficits, protectionism and executive overreach. President- elect Trump can push his America first goals with orders and statements, some of which will be hard on investor's ears and some of it music. Often these will be negotiating starting points with US trade/ border/ defense partners or with Congress on the tax cuts & infrastructure spending. Our 2017 strategy expects pro growth policies, but also some bumps & disappointments along the way. S&P should be 2250 by inauguration and 2300 upon a sizable corp. tax rate cut The corp tax rate is likely cut in the first 100 days and other proposed major corp tax code changes deferred. The time in-between inauguration and tax cuts is risky, waiting for stimulus when rates and FX markets reflect such will cap stocks. Fed will pause until Act is passed. A 15% corp tax EFTA01421033