Asset allocation Flash: Buying the dip

A cautiously constructive view on US­China trade talks: our base case is that the renewed tensions could be prolonged – potentially lasting months – but eventually, discussions will lead to a deal. The economic and monetary policy backdrop – moderate growth, low inflation and a preceived ‘put’ in the terms of monetary policy – still endorses a ‘goldilocks’ environment, notably in the US; this should be supportive of risky assets.