Morgan Says Buy Russia Stocks Seven Weeks After Sell Call – Bloomberg 10-20-14

Salient to Investors: Ronan Carr at Morgan Stanley said they are tactically overweight Russian stocks – upped to Buy from Sell – and that the situation is not deteriorating and that worst case outcomes, like additional sanctions, now appear less likely.  JPMorgan Chase said Russian stocks are likely to extend

READ MORE...

BlackRock Sales in October Rally Signal Its Limits – Bloomberg 10-20-14

Salient to Investors: Peter Hayes at Blackrock said nobody really expects rates to rally significantly from here and everybody is waiting for a pullback. Hayes said the muni market is overpriced and said sell into strength and wait for better opportunities. Munis have rallied in each of the first 9 months

READ MORE...

Fidelity’s Rossi Buying Stocks as Hedge Funds Get Caught – Bloomberg 10-16-14

Salient to Investors: Dominic Rossi at Fidelity Worldwide Investment said: He is looking to buy markets at these levels, particularly US stocks, amid a sell-off exaggerated and exacerbated by poor positioning from hedge funds. Long-only investors had largely maintained their asset allocations, but there has been a massive contraction of

READ MORE...

U.S. Stocks Tumble as Russell 2000 Enters Correction – Bloomberg 10-01-14

Salient to Investors: Randy Bateman at Huntington Asset Advisors said investors have always relied on the Fed priming the pump, which ends this month so investors are moving focus to the many geopolitical situations and economic concerns. Economists forecast growth from Japan to China will slow every year through 2016. Tim Courtney at Exencial Wealth

READ MORE...

Emerging Stocks Drop to Four-Month Low Amid Hong Kong Protests – Bloomberg 09-29-14

Salient to Investors: Hertta Alava at FIM Asset Mgmt said Hong Kong is usually very safe so the riots are unexpected, while Russia’s economy is getting weaker. Dmitry Polevoy at ING said the market is getting closer to panic, while the ‘ghost’ of peak external debt payments in September and

READ MORE...

Emerging Stocks Fall to Lowest Since May Amid U.S. Rate Concern – Bloomberg 09-25-14

Salient to Investors: Jonathan Garner at Morgan Stanley said the problems are more than just reaction to a Fed tightening, but include declining relative return on equity compared to developed markets. The Russian Micex is at 5 x estimated earnings, the cheapest in emerging markets. The MSCI Emerging Markets Index

READ MORE...

Citigroup Warns History No Guide in Policy Shift: Credit Markets – Bloomberg 09-23-14

Salient to Investors: Stephen Antczak et al at Citigroup said: Each of the 5 times since 1980 that the Fed started raising its benchmark rate, the extra yield on corporate bonds over government debt narrowed in the following 6 months as accelerating growth boosted optimism. Spreads will tighten this time also,

READ MORE...

U.S. Stocks Fall as Small Shares Tumble Amid Home Sales – Bloomberg 09-22-14

Salient to Investors: JC O’Hara at FBN Securities said the spread between the Russell and S&P 500 is widening again and worrying traders who want to see small caps participate.” Jonathan Krinsky at MKM Partners sees a good chance of US equities declining modestly into early October, citing deteriorating breadth and seasonal weakness.

READ MORE...