Proof Investors Love Tech Companies That Skimp on R&D – BloombergBusinessweek 07-09-14

Salient to Investors: A Bernstein Research study “Do High R&D Spenders in Tech Generate Stock Outperformance?” found: Over 1, 3, 5, and 10-year periods, the companies with the lowest spending on R&D tended to perform the best on Wall Street. Over the past 5 years, stocks in the biggest R&D

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Complacency Breeds $2 Trillion of Junk as Sewage Funded – Bloomberg 07-08-14

Salient to Investors: Global debt complacency is evidenced by investor enthusiasm for the debt of Ecuador, Clear Channel Communications, China’s Logan Property Holdings, Greece’s Hellenic Petroleum, Florida’s Orange County Industrial Development Authority. Japan’s Government Pension Investment Fund is even considering venturing into junk bonds. Almost any borrower is able to raise

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Gold Shines Again as Hedge Funds Boost Wagers on Advance – Bloomberg 07-08-14

Salient to Investors: Money managers increased net-long positions in gold for a fourth straight week through July 1 and assets in gold-backed global ETPs are rising at the fastest pace since November 2012. John Kinsey at Caldwell Securities expects further gold strength through 2014. Societe Generale predicts gold prices will

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Dimensional Winning in Emerging Markets: Riskless Return – Bloomberg 07-08-14

Salient to Investors: Karen Umland at the DFA Emerging Markets Small Cap Portfolio Fund is slightly overweight India, and had 15 percent of holdings in Taiwan, over 14 percent in South Korea, over 14 percent in China, and 9.2 percent in Brazil at the end of Q1. Umland dislikes Russia

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Defensive Trading Undone in $2 Trillion S&P 500 Rally – Bloomberg 07-07-14

Salient to Investors: Rotating into defensive industries has been a losing strategy for the third straight year as personal spending, manufacturing and inflation have exceeded analyst forecasts. The median projection says Q2 GDP grew 3.5 percent. Inflows into health-care and utility ETFs exceed $3 billion in 2014 versus $580 million inflows

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Woodford’s Cautious Stance See Glaxo, BAT Top 10 Holdings – Bloomberg 07-07-14

Salient to Investors: Neil Woodford at Woodford Investment Mgmt is cautious on the global economy and is buying sectors resilient to economic downturns like drugmakers and cigarette makers. Read the full article at http://www.bloomberg.com/news/2014-07-06/woodford-s-cautious-stance-see-glaxo-bat-top-10-holdings.html Click here  to receive free and immediate email alerts of the latest forecasts.

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