Salient to Investors:
Scott Minerd at Guggenheim Partners writes:
- The world is awash with liquidity and the promise of more easy money and QE in Europe bodes well for equities and bond prices.
- The recent high of the NYSE Advance-Decline Line is bullish.
- In Europe, negative deposit rates should encourage commercial banks to put their ECB reserves into the economy.
- Japan is in the very early stages of a fundamental economic restructuring. Abe’s appointment of 5 female ministers shows he is serious about increasing the female workforce, which will raise potential for economic growth.
- Dovish FOMC members will prevail even more in 2015 as hawkish members hold only 2 of the 10 votes. Next year’s annual rotation in voting members will further weaken the hawks and boost the doves.
- Any short-term Fed hike in 2015 would take 2 or 3 more years before reaching the point of recession.
- Central banks will be do whatever is necessary to keep their economies from failing
Read the full article at http://www.forbes.com/sites/scottminerd/2014/09/05/why-fall-may-bring-fresh-highs-for-stocks-and-higher-bond-prices/
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