As long as the bad news has not been "digested" yet, it is too early to return to risky assets

Equity valuation (we look at the United States and the euro zone) is currently very low and credit spreads have widened markedly despite companies' good financial situation. Investors could therefore be tempted to very rapidly return to risky asset markets. But we should not forget that bad news can still appear: Obviously (in December 2018) the vote on the agreement on the UK exit from the EU; A deterioration in Italy’s situation, starting with virtually zero growth in 2019; The decline in growth in the United States, which financial markets do not completely expect yet ; The imposition of tariffs in the United States on imports from China, if no agreement is found with Beijing to reduce the US trade deficit with China in the first quarter of 2019 . It will take some time for investors to understand that they are having practically no effect. As long as this additional bad news has not been digested, it is premature to invest in risky assets again, even though their prices are low.