A trade war is never going to be a good thing. But people tend to overstate their effects on the markets, says Luc D'hooge, the head of emerging markets bonds at Vontobel, the Swiss private bank.

«Of course, a trade war is always bad,» D'hooge told finews.com-TV in an interview. «But investors must live with uncertainty.»

In for the Long Run

Even if the U.S. administration and China remain at loggerheads for a longer period, this may not actually lead to more trading activities. Vontobel is sticking to its guns and looking for long-term opportunities and not the quick profit from fashionable trades, D'hooge said.

Click here to see what D'hooge has to say about the bank's fixed income strategy in Asia and emerging markets.