Jarrid Klug, Equity Portfolio Manager and Helge Staack, Senior Product Specialist
Inflation rates are expected to rise even more than previously expected due to the sharp increase in energy prices and the recent Ukraine conflict. However, a recession in Europe could be avoided thanks to massive fiscal programs, including additional military spending, as well as private sector investment in energy infrastructure.
Although we remain cautious on equities in the short term, we believe that markets could find a bottom in the coming months and then rise again, supported by persistently negative real yields and a recovery in the economy. Equities offer a real return component in the form of dividends, which may prove attractive in an environment of higher inflation, medium-term inflation uncertainties and a lack of viable alternatives.
Join our webinar where we will be discussing our outlook on equities and the latest performance of our DWS Invest Top Dividend fund which aims to invest in profitable, high-dividend companies.
_Jarrid Klug, Equity Portfolio Manager
_Helge Staack, Senior Product Specialist Equities
_Baruc Fernández, DWS Sales and moderator