Masters in Business Getting Earnings Right with Deutsche Bank's Binky Chadha
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Nov 14, 2025 Binky Chadha, Chief U.S. Equity & Global Strategist at Deutsche Bank, shares insights from his work at the IMF and his current role in asset allocation. He discusses the unusual mix of low unemployment and strong GDP growth, emphasizing its positive impact on equities. Binky elaborates on how mega-cap tech has influenced recent earnings and suggests that other sectors are poised to catch up. He also highlights key indicators and the implications of tariff policies on growth, while advising new graduates to align their careers with their passions.
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Rare Low-Unemployment, High-Growth Cycle
- The current US cycle is peculiar: low unemployment with robust GDP growth is rare and historically bullish for equities.
- Such periods (1960s, late 1990s) unleashed strong market returns driven by high risk appetite and earnings expansion.
Stable Core With Cyclical Upside
- Two thirds of US GDP is stable, low-volatility growth while cyclicals (~20%) create the big swings.
- The cyclical components have room to rebound and could drive meaningful upside if they recover.
Missed Recession Created Pent-Up Demand
- Repeated recession forecasts that failed (2023–early 2024) created pent-up corporate and consumer demand.
- That delayed spending boosted resilience and now supports a continued cyclical pickup.
