“Our latest strategic targets call for positive mid-single returns for equity markets on average until March 2026. But this implies only a mild downturn in the US and not an outright recession as a result of current policies,” he adds.
Global financial markets remain under pressure from tight monetary policy, geopolitical tensions and growing trade fragmentation. In the face of these uncertainties, investors are re-evaluating their portfolios, challenging the durability of US exceptionalism and turning to emerging Asia in search of viable opportunities.
The once-lasting appeal of US assets is beginning to show signs of strain. Johannes Mueller, global head of research at DWS, points to valuation excesses and shifting capital flows. “US equities have outperformed the rest of the world since 2009 and have built a huge valuation premium to other markets,” he says. “Some correction was overdue here.”
