Kames' Milburn: LTRO is no 'panacea' for euro crisis

As the volatility index trends downwards investors should be selling - not buying - risk assets, said Kames Capital's David Roberts and Phil Milburn as they warned the eurozone crisis will return to haunt markets.

The pair said the LTRO facility launched by the ECB is a positive for banks and markets but the eurozone's problems will rumble on and they are 90% certain Greece will "default again". Roberts said: "There is a clear expectation in the market that the eurozone crisis has been managed but we think the jury is still out and, although we have done well out of the rally, it is appropriate to remain cautious." He added the team are increasingly looking at "tempering some of the risk" added to portfolios in the first quarter as Europe's problems will return to dampen markets. Roberts poi...