Seven insights to navigating trade war turbulence

### **Amundi Investment Institute – Topic of the Month: Navigating a Trade War Economy (April 2025)**

Amundi’s investment strategists present their view on adapting portfolios to structural shifts triggered by escalating global trade tensions and economic fragmentation.

Key Insights:

• Profit Recession Risk: Trade disruption may trigger a profit recession even without an economic one, increasing volatility.
• Valuation Reset: U.S. equities have derated, but remain expensive; European and select EM equities offer better entry points.
• Fixed Income Focus: Favour European government and investment-grade bonds amid relative policy stability and rate-cut potential.
   

Access the full report and explore Amundi’s cross-asset strategy in response to rising global protectionism.