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CIO View Port­fo­lio: Per­spect­ives

Portfoliomanagement
CIO View
Multi Asset
Bonds
Currencies
Fixed Income
Equities

2/4/2026

In our monthly Multi-Asset update we describe the translation of our CIO View into the CIO View model portfolio.

Headshot of Vincenzo Vedda, CIO of DWS

Vincenzo Vedda

Chief Investment Officer

Over­view

Idea of the month

Value remains our preferred equity style. As earnings growth between Value and Growth has converged, the case for paying premium valuations for Growth has weakened in our view. Value continues to offer a compelling entry point, trading at a significant discount — around 18x P/E (or 14x for Enhanced Value) versus 23x for the MSCI World and 33x for Growth — while still expected to deliver roughly 10% earnings growth. In addition, Value provides meaningful diversification potential, with lower market correlation and less concentration in top holdings. Investors can choose between Enhanced Value, which is sector‑neutral and tilted toward ex‑U.S. markets, and Classic Value, which is U.S.‑neutral and levered to Financials, Materials and undervalued Tech.  

EPS development Value (enhanced) vs. MSCI World 

Source: Bloomberg Finance L.P., DWS Investment GmbH as of 1/22/26 EPS Estimates 1YR Forward / indexed, 1/29/21=100  

Our take on dur­a­tion & risk

Risk

Peak trade uncertainty is likely behind us. Improving growth, supportive fiscal and monetary policy and ample global liquidity create a constructive setup in our view, with no U.S. recession expected. Two Fed cuts and UST 10Y yields below 4.5% should support risk assets. However, elevated valuations and concentrated market leadership in AI and tech increase vulnerability. Diversification remains crucial: regional and style allocation should matter more than pure equity quota in 2026. While we think technicals support a pro‑risk stance over one month, short‑term corrections remain possible.

We keep our risk preference stance at +1

 

Source: DWS Investment GmbH as of January 29, 2026  

Duration

We maintain a neutral duration stance and favor a 5s30s steepening, since we think short rates still lack the upward momentum needed to end the steepening narrative. In EUR duration, we are tactically long in 2y and 10y Bunds, with 3–5y maturities as our preferred segment, supported by Bund yields trading at the top of their range. In USD duration, we stay neutral and tactically trade 10y Treasuries within the 4 to 4.5% band, as we see stronger U.S. growth driving consolidation and limiting diversification benefits. Relative preference: Bunds = Gilts > Treasuries > JGBs.

We stick to our neutral duration stance

 

Source: DWS Investment GmbH as of January 29, 2026

Whats up in the seg­ments?

We see equities with lukewarm optimism, highlighting +1 for Emerging Markets and Value

In equities, we maintain a +1 risk stance but keep reserves for potential corrections. The AI differentiation and general broadening of markets may continue, yet the Q4 season shows record‑high beat ratios with weak price reactions, highlighting concerns around ambitious 2026/27 EPS growth expectations. We don’t expect further multiple expansion in 2026; upside should come mainly from earnings, while we expect valuations to stay elevated and be increasingly dependent on AI dynamics, Fed policy, inflation trends and geopolitics. We stick to +1 on Emerging markets due to attractive relative valuations and expected superior 2026/27 growth led by China, Latin America strength and positive Asia/AI exposure, while Europe, the U.S. and Japan stay neutral. We move Health Care to neutral after strong outperformance and narrowing valuation gaps. We continue to favor Value (+1) given its attractive pricing, diversification versus crowded mega‑caps and cyclical upside. Looking at fixed income, we continue to expect established Treasury ranges for now, with the 2y remaining around a 3.4-4% range, and the 10y in a 4-4.5% range, until we have more data to suggest otherwise. In the Eurozone, the tense U.S.-EU relationship and yields at the top of the range are making the risk-return trade-off more pronounced. Within currencies, we remain neutral EUR vs. USD with a short USD bias. U.S. data has strengthened again, including labor‑market indicators, while German figures also surprised on the upside.

Decoupling  

Gold vs. U.S. 10y Real Yield  

Source: Bloomberg Finance L.P., DWS Investment GmbH as of 1/28/26  

Copper vs. Gold Ratio vs. EU Cyclicals vs. Defensives Ratio

 

Source: Bloomberg Finance L.P., DWS Investment GmbH as of 1/28/26     

CIO View Mod­el Port­fo­lio po­s­i­tion­ing vs. an­chor

This allocation may not be suitable for all investors and can be changed at any time without notice. 

Source: DWS Investment GmbH, 29 January,26.The anchor allocation refers to the strategic asset allocation, while the portfolio positioning refers to the tactical asset allocation. Rounded figures. 

1 Including equity derivatives.

 2 Total excluding interest rate derivatives (derivatives are included in the positioning figures at a subordinate level).  

 



 

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