During the second quarter of the year, the financial markets fared well, buoyed by favourable developments in reciprocal tariffs. The escalation in geopolitical tensions in the Middle East added to an already high level of volatility, but did not derail the recovery in asset prices following a dreadful March and early April. Looking ahead, investors’ nervousness will probably persist, as further news regarding tariffs will arise over the weeks to come. As equity valuation has increased following the strong rebound, we believe a more neutral stance towards risky assets is now adequate.