Insights Trump, Xi Call A Cease-Fire on Trade

Highlights

• A trade-war "cease-fire" between U.S. and China, following somewhat more dovish Federal Reserve comments last week, suggests a more supportive tone for risk markets into year-end
• That said, a three-month U.S.-China negotiating window seems short in light of the myriad complex issues to be resolved; we expect more short-term volatility as investors assess progress (or lack thereof) into March
• For now, we do not see reason to materially adjust asset allocations; however, we continue to closely monitor risks