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In our recent CIO Viewpoint we provide an update on Q2 2024 earnings season.

In this CIO Viewpoint Equity – The return of volatility – we comment on the latest equity market developments and explain why we still like the idea of a “Market Cap Barbell” and how it addresses a dilemma. 

 

Key takeaways:

  • July was characterized by two distinct chapters while the most recent early-August rout has seen some astonishing equity market moves.
  • We reiterate our preference for a “market cap barbell” rather than trying to time the market in the prevailing environment where there are multiple uncertainties.
  • We assume that the high dispersion of stock performance during the current earnings season may continue over upcoming earnings seasons as relative winners are likely to be those companies executing on margins in this challenging environment.

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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.

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