Wall Street’s Latest Bounce – Ostrich Economics At Work – David Stockman’s Contra Corner 10-20-15

Salient to Investors: David Stockman writes: The price of financial assets is now artificial and wildly inaccurate. $300 trillion of global finance cannot remain stable much longer. Bulls believe the Fed is on hold until at least next March, while Wall Street is projecting S&P 500 earnings of $130 per share on an ex-items basis for

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U.S. Expansion Poised for Longevity – Bloomberg 06-09-13

Salient to Investors: The economic expansion shows signs of lasting almost twice as long as average, with few of the excesses that often presage the start of contractions – inflation is slowing, not quickening, household debt is shrinking, not expanding, and the labor market is slack, not tight. Robert Gordon

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JPMorgan Sees Home Prices Up 14% as BofA Touts Party – Bloomberg 03-15-13

Salient to Investors: JPMorgan Chase now predicts US home prices will rise 7 percent in 2013 and over 14 percent through 2015, and Bank of America predicts prices will now rise 8 percent in 2013 as homebuyers and investors rush to acquire a dwindling supply of properties and the Fed lowers mortgage rates. Samantha McLemore at Legg Mason

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Housing Packs Punch for U.S. Growth in 2013 and Beyond – Bloomberg 02-04-13

Salient to Investors: Climbing home prices are lifting household wealth and boosting the purchasing power of consumers. Declining mortgage delinquencies and foreclosures are giving banks greater leeway to lend. Rising property-tax revenue is alleviating pressure on state and local governments to cut budgets. Mark Zandi at Moody’s Analytics said the housing

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Sandy Seen Boosting U.S. With as Much as $240 Billion Rebuilding – Bloomberg 11-23-12

Salient to Investors: Economic Outlook said Sandy reconstruction and related purchases and hiring may increase US economic growth by 0.5 percentage point in 2013. Bernard Baumohl at Economic Outlook said construction costs will be more than replacement because much of the work will involve fortifying structures. Goldman Sachs said Sandy may reduce economic growth by

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Americans Say Europe’s Austerity Lesson Means Act Now – Bloomberg 11-11-12

Salient to Investors: Alice Rivlin at Brookings said the lesson of Europe is, don’t wait until you’re in a crisis to act and austerity is not a good prescription for weak economies. Rivlin said the US has the luxury the Europeans don’t, no pressure in the financial markets. Mohamed El-Erian at Pimco said the fiscal cliff would

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Obama’s Economy Seen Gaining in New Term Regardless of Policies – Bloomberg 11-08-12

Salient to Investors: A strengthening economy will boost the president’s second term.The easy-money policy of the past four years is likely to continue throughout Obama’s second term. Job growth will increase tax revenue and help shrink the budget deficit while keeping taxes low and preserving essential spending – all without any magic from

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