Stay Invested, but Own Resilience

DWS’s April CIO View argues that growth can withstand current geopolitical shocks, but portfolios now need stronger ballast as higher yields and energy risks reshape markets. 

• The firm keeps a +1 risk stance, noting that geopolitical selloffs rarely become lasting bear markets unless oil shocks persist.
• They retain a curve steepening bias (5s30s) and prefer front-end duration over broad long-bond exposure.
• Equity preferences favor Japan and Emerging Markets, with sector tilts toward Health Care, Energy, and Value.
• Diversification across regions and styles is viewed as more important than simply increasing equity weight.

Can investors stay exposed without becoming complacent? The note suggests resilience now matters as much as risk appetite.