Cautious but optimist
==============

- Greece vote of confidence to lift markets
The Greek vote of confidence is yet another step in the right direction. With the new measures to be voted shortly by the Greek government we will hopefully find a solution, at least in the short term, to the Greek problem. In the long term the main issue remains: European peripherals countries need to find the right formula to implement these necessary austerity plans without suffocating growth.

- Chinese Visit important to Europe
Chinese Premier visit to Germany, Hungary and the UK at the end of this week is an important step to potential strengthening of the Euro if China decides to further diversifies its current foreign reserves from the USD to another currency. The Swiss Franc market being too small, the Euro is the only alternative. I see this visit as important to restore confidence in the markets and Sovereign European Debt especially in the peripherals.

- Commodities: Good Entry Point
With the Greek problem out of the markets we could see further strength in the Euro, that will probably continue its path due to higher interest rates. Weakness in the US Dollar is positive for commodities. In my view the current post-correction level is a good entry point for investors interested in a broad commodity exposure. Oil to remain volatile given the situation in the middle east but probably higher by the end of the year. Gold still a good storage of value to see a further increase by the end of the year.

- The Safest banks in the World ?

Swiss banks are experiencing record inflows from developed economies
(52% of the 1.96 trillion francs held in offshore Swiss banks account) a trend that is very likely to continue. With the new proposed legislation that will require the two largest Swiss banks to hold a
total capital ration of 19% (10% tier one 9% other capital) well above the 7% of Basel III requirements Swiss banks will be among the safest in the World.

Even now some of the Swiss cantonal banks have a tier one capital ratio of over 13% and an unlimited State Guarantee making them among safest in the World.

Swiss and the few European well capitalized banks represent a good investment opportunity. Given the overall negative sentiment toward European banks some, these that will not require further capital injections, are also a good investment opportunity.

In short
Strategy: Cautious but optimist
=================================

- Greek should be able to implement the necessary measure to have access to further EU
and IMF funding. A default will have to be avoided. This will be positive for European markets (but not only) and the Euro;
- Chinese further investment into Euro denominated asset including peripheral economies bonds can further sustain the momentum in the European markets;
- Commodities to benefit from a weaker dollar and modest but steady growth. The supply demand imbalance is still present in several commodities. I recommend a broad exposure through a commodity index.
- Swiss banks competitiveness to increase due to higher capitalization and unique safe heaven status;