A decade of exceptional returns for bond-equity portfolios has been undoubtedly quite pleasing for investors. Year 2022, however, reminds market participants that investing is not always a smooth sailing – volatility in US Treasuries has been comparable to that of equities, and returns have been challenging in both asset classes. How can investors meet their financial goals in an environment like that? Which asset classes need to be considered? We address these questions by introducing a global market portfolio, setting into perspective the delicate balance of traditional and alternative asset classes. Taking a bird’s eye view on global capital markets, we also explore the role of the emerging asset class of digital assets in this context. In addition, we outline how client-specific circumstances and implementation constraints might impact the scope of opportunities of the investments landscape that can be captured. Lastly, a successful investment framework relies on a strategic view on risk and return: for this purpose, we apply our DWS Long View return framework and showcase how risk analytics help understanding interactions between invested assets.
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