Navigating Volatility: Earnings Resilience Supports Cautious Optimism

This Q2 2025 Market Outlook, led by CIO Vincenzo Vedda and the DWS Investment team, provides a data-driven perspective on global asset performance amid geopolitical flux and monetary uncertainty.

• Equities remain attractive as corporate earnings are expected to grow, with the S&P 500 benefiting from AI-driven momentum and improved shock resilience.

• Bonds offer value, supported by high yields and expectations that the Fed will intervene if long-term U.S. yields spike; global FX dynamics also enhance dollar-based returns.

• Growth slows, with U.S. GDP forecast at 1.2% for 2025, but select regions like Germany show signs of recovery.

Access the full report for detailed scenario analysis and cross-asset positioning strategies tailored to today’s evolving macro landscape.