This edition of VantagePoint reviews the potential for contagion from Greece, concluding that the ECB appears to have adequate ammunition to manage through current conditions, but longer-term political risks remain. We consider recent activity in Chinese equity markets and conclude that offshore Chinese H-shares offer more appeal than onshore A-shares, where upside potential is limited as highly leveraged investors seek to reduce exposure by selling into rallies. We examine the prospects for a sustained reversal of major trends that have persisted since last year, concluding that reversals appear unlikely for now.

Advice in Brief We generally remain neutral on risky assets, but are becoming more cautious and selective as the market cycle advances and the US Federal Reserve looks to begin raising rates. We maintain our advice that investors shift more capital into safer assets as equity markets become more expensive. Volatility has been rising in…

VantagePoint is a quarterly publication from our Chief Investment Strategist summarizing C|A’s total portfolio advice. Advice in Brief We have been recommending since the middle of last year that investors shift more capital into safer assets—more fundamentally driven hedge funds and Treasuries—as equity markets become more expensive, even as we remain neutral on equities on…