DWS: The valuation of US stocks is generally high, and the market has a very low tolerance for negative news.

DWS Global Chief Investment Officer Vincenzo Vedda described the current market sentiment as "cautiously optimistic in high-risk times." He pointed out that although the valuation of US stocks is high, the distribution of this year's "leading stocks" is more balanced than in the past, no longer dominated by the "FAANGs" as it has been in the past few years. This balance undoubtedly benefits the market. However, there are still several worrying factors in the market. The expected fiscal stimulus measures have not been implemented as anticipated, and the outlook for public debt is increasingly seen as an economic burden. In addition, apart from the technology and financial sectors, the earnings performance of companies in the S&P 500 index may disappoint. Currently, stock and corporate bond valuations are generally high, meaning the market has a very low tolerance for bearish news. If negative news emerges, asset prices are likely to decline rapidly.