Epstein Secrets

strials remain a significant concern. Most of the rest of the market, both the S&P and the Russell 2000, seems fully valued except a few big Banks, Utilities, Airlines, and some of our specific stock picks. We do not believe that a recession looms or that S&P profits will fall again in 2016. We also do

to US growth — relative to the start of the year — since the financial crisis. Peter Hooper, (1) 212 250 7352 Matthew Luzzetti, (44) 20 754 73288 Michael Spencer, (852) 2203 8303 EFTA01475995 Mark Wall, (44) 20 754 52087 Torsten Slok, (1) 212 250 2155 Deutsche Bank AG/London Page 17 EFTA01475996 8 Dec

ng 20% Leading and gaining Energy Telecom Health Care Cons. Staples Lagging and slipping -15% -10% Source: Deutsche Bank, Thomson Reuters Utilities -5% 0% YTD Total Return 5% 10% Leading but slipping 15% Cons. Disc. Page 42 Deutsche Bank Securities Inc. MTD Total Return 3 Month Total

Page 51 EFTA01476552 David Folkerts-Landau Chief Economist and Global Head of Research Raj Hindocha Global Chief Operating Officer Research Michael Spencer Regional Head Asia Pacific Research International locations Deutsche Bank AG Deutsche Bank Place Level 16 Corner of Hunter & Phillip Streets

gure 17: EM versus DM by sector — P/BV (x) and RoE (%) Sector Financials Energy Materials Consumer Discretionary Consumer Staples Industrials Utilities Telco Information Technology Healthcare AGGREGATE EM P/BV (x) EM ROE (%) 1.46 0.94 1.35 2.24 3.82 1.47 1.06 2.39 2.08 3.90 1.59 13.8

hout the broader economy (Figure 32 and Figure 33). So far this appears to be working — most economists, including DB's own senior Asian economist, Michael Spencer, now acknowledge the extent to which the incremental capital to output ratio (ICOR) has deteriorated since the financial crisis, as the Chinese au