Risk of Defaults in Distressed Debt Is Climbing, S&P Says – Bloomberg 08-22-14

Salient to Investors: Diane Vazza et al at S&P said: The US distress ratio of bonds is at 5.4% versus the 3-year low of 4.7% in May. A rising distress ratio is typically a precursor to more defaults when accompanied by a severe and sustained market disruption. Read the full article at  http://www.bloomberg.com/news/2014-08-22/risk-of-defaults-in-distressed-debt-is-climbing-s-p-says.html

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Buffett Waits on Fat Pitch as Cash Hoard Tops $50 Billion – Bloomberg 08-04-14

Salient to Investors: Few businesses are large enough to merit Warren Buffett’s attention. Berkshire Hathaway spent a third of the total from a year earlier on equities in half1 2014, while sales of stock more than doubled. Buffett dislikes paying a dividend and rarely buys back shares. David Rolfe at Wedgewood Partners said Buffett’s list

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Emerging ETFs Turn Positive for 2014 as Outflows Reversed Bloomberg 07-25-14

Salient to Investors: Flows into emerging-market ETFs have turned positive for the year, reversing outflows in the first 2 1/2 months of 2014. The most inflows in 2014 have gone to India-focused ETFs. Investors have withdrawn $1.5 billion from China-targeted ETPs over concern over economic imbalances there. The RSI of the BlackRock ETF

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Small-Cap VIX Up 11% Echoes Fed Concern for Valuations – Bloomberg 07-21-14

Salient to Investors: The Russell 2000 VIX is up almost 11 percent in 2014 versus a 6.6 percent drop in the VIX and at its highest level since 2006 relative to the VIX. Russell Rhoads at CBOE’s Options Institute said the premium indicates we would get a bigger pullback in small-caps than large-caps in a market

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MARKET GURU: The Conditions Are Set For A ‘Veritable Explosion’ In M&A That Sends Stocks To ‘True Bubble Levels’ – Business Insider 07-18-14

Salient to Investors: Jeremy Grantham said: The stock market is expensive and headed for a bubble at S&P 500 above 2250, and offers paltry returns for years to come. Expect an explosion of M&As to record numbers due to cheaper debt in this cycle, profit margins that will remain high, a still young

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