Epstein Secrets

S Equity Strategy Baskets Tech's Enduring Eight Total Shareholder Return Stimulator Dividend Dark Horses China Cyclicals Source: Deutsche Bank Bloomberg Ticker DBUSTECH DBUSBBD1 DBUSDFCF DBUSCNCY Deutsche Bank Securities Inc. Deutsche Bank does and seeks to do business with companies covered in

is still 200bps higher than its average of 390bps. 10 15 20 25 30 35 0 5 LTM PE (lhs) Source: S&P, FRB, Deutsche Bank Implied ERP (rhs) Avg PE = 15.9 Overstated EPS from inflation distortions 0% 2% 4% 6% 8% 10% 12% A -15 forward PE wouldn't be threatened until 10yr yields are wel

90, Euro area and US Q4-07 Vertical lines indicate the peaks in easing for long term real rates Source: Deutsche Bank Research, Haver Analytics LP, Bloomberg EFTA01476084 Finance LP, ECB, Federal Reserve, Bank of Japan, Eurostat, BEA, CAO Similarly, the output gap has mirrored the dynamics of credit,

implied ERP 10 15 20 25 30 35 0 5 Recession Implied ERP (rhs) Avg ERP ex 1975-82 = 3.5% Trailing PE (lhs) EFTA01476109 Avg ERP = 4% Avg PE = 15.9 Red dot shows implied ERP on 10yr TIPS yield of 1.5% instead of 0.28% currently Source: Deutsche Bank Research, IBES, S&P Overstated EPS f

trength 2015E 20502100 $119 17.4x 17.6x $41 2016E 22502300 $125 18.2x 16.7x $44 Date 16 Nov 2015 8 Nov 2015 1 Nov 2015 23 Oct 2015 Bloomberg Ticker DBUSHIFC DBUSBRTE DBUSCICG DBUSDMST Deutsche Bank Securities Inc. Deutsche Bank does and seeks to do business with companies covered in

15 20 25 30 35 0 5 Recession Implied ERP (rhs) Avg ERP ex 1975-82 = 3.5% Source: Deutsche Bank, S&P, IBES Trailing PE (lhs) Avg ERP = 4% Avg PE = 15.9 Overstated EPS from inflation distortions Low offered ERP contributes to crash Long-term growth optimism Return to normal 0% 2% 4%