This past week we’ve seen a significant reduction or even outright elimination of many of the downside risks that have created clouds of uncertainty both in Washington and in financial markets over the past several months. The most substantial clarifying event was the announcement of the Phase 1 deal between China and the U.S. However, we would caution investors against assuming that all policy uncertainty has been eliminated. A fragile truce While we will not likely see the details of the “skinny deal” until January, last week’s agreement between the world’s two largest economies is no doubt a welcome development. ... (full story)