Trump policies to boost S&P 500 by 15% to 2,500 in 2018, Deutsche Bank says

Donald Trump
Jabin Botsford | The Washington Post | Getty Images

Deutsche Bank strategist David Bianco told investors the market will rally over the next two years on optimism about President-elect Donald Trump's economic agenda.

"We think the market is under appreciating the likely big boost to S&P EPS from a lower corporate tax rate and the boost to bank profits from rising yields (and lower pension expense) and the much higher chance now of a long-lasting economic expansion that rivals the 10-year U.S. record," Bianco wrote in a note to clients Friday.

"We're more confident now that the S&P will reach 2,500 in 2018 before suffering its next bear market."