DWS Long View Q3: Japanese Reflation Analysis

This report presents the DWS long-term capital market assumptions for major asset classes as of September 30, 2023, while examining the associated risks. It outlines the return forecasts for the next decade, which are modestly higher compared to the previous quarter, driven by increased fixed income yields and a slight decrease in equity valuations. The report discusses Japan's economic landscape, highlighting potential catalysts that may help the country escape its long-standing deflationary trap. It notes that structural challenges remain, and economic reform will rely on sustained wage pressures and changes in consumption behavior. The report also details the recent volatility in interest rates and its impact on equity and fixed income markets, along with the performance of various asset classes. Additionally, it provides 10-year forecasts for different equity indices and fixed income categories, reflecting a more favorable outlook for certain investments.