In our latest CIO Viewpoint on equities, we comment on the latest equity market developments and explain why we like the idea of a "Barbell" approach that combines Mega Tech stocks with European Small Caps. Moreover, we provide a short Q2 2024 earnings season preview.

Key takeaways:

  • Equities remain the most convenient way to capitalise on AI-driven technological progress. Mega Cap Tech valuations are not yet historically at bubble levels.
  • European Small Caps may now start to perform better. A “Barbell” approach, combining them with Mega Cap Tech stocks, would have various merits.
  • The U.S. Q2 earnings season kicks off next week. S&P 500 Q2 earnings expectations have risen since the beginning of April, but with marked sectoral divergence.

'

The CIO Viewpoint below is available to download. Please refer to the Important Information at the end of the memo for disclosures and risk warnings.

PDF

Language:

In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S. No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive. Investments come with risk. The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk.

Change of name: As part of Deutsche Bank’s Private Bank, the former International Private Bank also adopted this title on July 20, 2023.

The content and materials on this website may be considered Marketing Material. The market price of an investment can fall as well as rise and you might not get back the amount originally invested.  >The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. Please consider the sales restrictions relating to the products or services in question for further information. Deutsche Bank does not give tax or legal advice; prospective investors should seek advice from their own tax advisers and/or lawyers before entering into any investment.