In this episode of the Week in Markets, equities research analyst Louis Chua explores how the equity and debt markets have reacted to the 90-day truce in the trade war between the US and China, and what are some of the lingering concerns to watch over the next 90 days. Overall, while the financial markets have reacted with relief, we believe that the US fiscal situation remains far from being solved, and we would take advantage of the current opportunity to add diversifying exposure outside the US. In the long term, an end to US exceptionalism and foreign investors’ asset allocation decisions to diversify away from the US can have a significant impact to equity and fixed income markets.
