Market Outlook - The current market sentiment reflects cautious optimism regarding a potential de-escalation of ongoing conflicts, with expectations for a near-term resolution [1] - There is a general acknowledgment that predicting market movements is challenging, with no clear edge on asset direction [2] Investment Strategy - Recent price actions indicate significant optimism about a resolution, but there are concerns about inflationary impacts from energy shocks, prompting a need for resilient portfolio construction [3] - Gold has been added to portfolios as a risk asset balance, although its performance has been disappointing in recent risk-off moments [4][5] - Adjustments have been made to fixed income positions, including adding short-duration assets and trimming emerging market debt, in response to market conditions and inflation expectations [6] Global Equity Considerations - European equities had seen significant interest, but much of the price movement was attributed to multiple expansions rather than fundamental improvements, raising concerns about future earnings growth [9][10] - The inflationary pressures in Europe are expected to complicate the growth outlook, leading to a cautious stance on European equities compared to US equities [11]