There are numerous fundamental developments and political risk factors that make stocks and corporate bonds unattractive given the elevated valuations. This doesn’t mean risky assets are unattractive; as long as asset prices remain policy instruments to stimulate economic growth, central banks will do whatever they can to keep nominal asset prices under upward pressure. Yet, we expect a risk-off phase in the coming weeks to months, while from an asset allocation perspective the outlook for European assets has improved..