Salient to Investors: Jim O’Neill writes: When the Fed starts to taper, expect turbulence in financial markets, especially for overpriced assets. We are headed to a normal 10-yr T-yield of 4 percent or more versus 2.2 percent now, and to a return of the equity culture. mcd-grp.com/cat/ In 1994, Greenspan made it clear that
READ MORE... →Salient to Investors: Jim O’Neill writes: The rising success of German soccer clubs seems to say something about backbone and deep strength. Germany’s economic resilience owes much to the diffusion of its strength across a strikingly diverse range of big cities, uncommon in the rest of Europe. German soccer clubs have
READ MORE... →Salient to Investors: Martyn Davies at Frontier Advisory said there’s a shift in power from the traditional to the emerging world, with much geo-political concern about this in the western world. Foreign direct investment into BRICS nations accounted for 20 percent of global FDI flows versus only 6 percent in
READ MORE... →Salient to Investors: Jim O’Neill at Goldman Sachs says: China equities are very cheap and are the best place to be in 2013. Don’t expect draconian tightening in China as inflation last year was way below their target and the government has been careful not to stimulate economy too much and are doing a good
READ MORE... →Salient to Investors: Wayne Lin at Legg Mason said equities are fairly valued but we have had a very strong run and the question is what is going on more fundamentally. Jim O’Neill at Goldman Sachs expects the S&P 500 to rise to 1575 in 2013 but said US economic growth will have
READ MORE... →Salient to Investors: Jim O’Neill at Goldman Sachs Asset Mgmt sees 1575 on the S&P 500 in 2013 but to go above 1600 would require US economic growth to rise to ridiculously strong levels of 4 percent or more. O’Neill sees a trading range for the S&P 500 of 1,500 to
READ MORE... →Salient to Investors: Neil Jones at Mizuho Corporate Bank said people are looking to buy the dollar against the most vulnerable currencies, currently the pound and yen. Jones cited much uncertainty about the U.K. economic outlook. Scott Thiel at BlackRock said it sold the Pound after the Bank of England left
READ MORE... →Salient to Investors: China surpassed the US to become the world’s biggest trading nation in 2012. Jim O’Neill at Goldman Sachs said China is becoming rapidly the most important bilateral trade partner for many countries – Germany may export twice as much to China by the end of the decade as it does
READ MORE... →Salient to Investors: David Kostin at Goldman Sachs said volatility – the drawdown risk – will deter investors from moving into stocks from bonds in 2013 even as dividend returns exceed fixed-income yields. Kostin said most investors will sell US government bonds if losses push the 10-yr Treasury yield to 3 percent from 1.85
READ MORE... →Salient to Investors: James Paulsen at Wells Capital Mgmt said Apple is the story for the market and proxy for other companies and industries. James Cordwell at Atlantic Equities Service said IPhone sales are slowing because smartphones have saturated developed markets. Almost 80 percent of the 28 S&P 500 companies so far
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