Vanguard has benefitted more than most from the record-setting influx of money into indexed mutual funds, but the leader of the Malvern financial giant is growing leery of the escalating record highs in the U.S. stock market.

“I think the U.S. market is fully valued right now,” said CEO Bill McNabb in a Bloomberg report by Sree Vidya Bhaktavatsalam.

Chief among the concerns, McNabb noted that he’s bracing for disappointments in tax reform, infrastructure spending, and scaled-back regulation.

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“The probability of any or all of those things happening in the next six months is pretty low,” he said. “That would tend to disappoint investors.”

The biggest market opportunity, then, may be a world away, where Vanguard is exploring an entrance into Chinese investment management.

“Of course, everyone is trying to figure out China’s next 12 to 18 to 24 months, and that is holding people back a little in terms of investing in the emerging side,” McNabb said.

Read more of the Vanguard perspective on today’s stock market on Bloomberg here, and check out previous VISTA Today coverage of Vanguard here.