Healthcare Opportunity and Duration Discipline

The July 2025 CIO View Portfolio Perspectives from DWS outlines tactical shifts across equity, fixed income, and FX, reflecting evolving macro risks, valuation gaps, and sector-specific opportunities.

• Equity rotation underway: U.S. equities are reduced in favour of European stocks (+1) and global healthcare, which now trades at attractive forward valuations despite stable EPS outlooks.

• Fixed income positioning steady: Duration stance remains neutral, with a steepening bias at the long end—particularly in EUR rates as fiscal policies evolve.

• Cautious optimism returns: DWS upgrades overall risk stance to neutral, citing fading macro tail risks and supportive earnings season expectations.

Interested in how DWS expresses these views in a liquid multi-asset portfolio? The full report offers a breakdown of implementation and risk allocation across geographies and asset classes.