Uncertain periods call for robust portfolios, and an expert suggests this one is outstanding.
In a recent market outlook published by DWS, a subsidiary of Deutsche Bank, Björn Jensch, the global chief strategist for equities, emphasizes the importance of diversified global equity portfolios.
Jensch recommends a balanced approach that typically emphasizes broad geographic and sector diversification to manage risk and capture growth opportunities worldwide. This strategy includes investing across developed and emerging markets, a mix of sectors such as technology, healthcare, consumer goods, and financials, and a focus on quality and growth companies with strong earnings growth, solid balance sheets, and sustainable competitive advantages.
To achieve a more diversified global equity portfolio, Jensch suggests considering alternatives such as the SPDR MSCI ACWI IMI UCITS ETF (WKN: A40F93) or the Invesco MSCI World Equal Weight UCITS ETF (WKN: A40G12). The former provides a broad global exposure, while the latter offers a more even distribution of weights among the constituent companies within the MSCI World Index. Another option is the L&G Gerd Kommer Multifactor Equity UCITS ETF (WKN: WELT0B).
Jensch is skeptical about the growth stocks that have driven the markets in recent years due to overheated valuations. However, he sees opportunities through potential undervaluations in certain stocks. He also advocates for a mix of investment styles, including value stocks that have suffered recently.
Jensch anticipates corporate earnings to grow by 5-10% over the next twelve months. Factors that could impact the stock market's positive development include US consumer sentiment after the election, inflation, and potential corporate earnings from AI.
Jensch believes that a globally diversified portfolio is a good answer to any crisis, offering less volatility and high returns. He encourages investors to review recent DWS research reports or statements by Björn Jensch for his most current and detailed portfolio recommendations tailored to prevailing market conditions.
Business strategies recommended by Björn Jensch, global chief strategist for equities at DWS, involve investing in various sectors such as technology, healthcare, consumer goods, and finance. Diversification in business also extends to investing in developed and emerging markets, as Jensch emphasizes a balanced approach to manage risk and capture growth opportunities worldwide.
