Salient to Investors: Adam Buchanan at Ziegler said the muni supply and the other rate pressures will have an effect, and buyers will try to get better rates. Lipper US Fund Flows data show that individuals have poured $8.3 billion into muni mutual funds in 2014, the most since 2012. Phil Fischer at
READ MORE... →Salient to Investors: Lewis Braham writes: Contrarian funds can be a hedge of sorts, though a potentially volatile one as out-of-favor sectors tend to be cyclical and prone to booms and busts. Shorting is inherently dangerous as markets have been trending higher. Brian Singer at William Blair Macro Allocation Fund
READ MORE... →Salient to Investors: Moody’s Investors Service the total funded ratio – assets relative to liabilities – of state pensions fell to 48 percent under its new methodology from 74 percent before the changes. The ratio measures fund management and whether a state is keeping up with promises to retirees. Moody’s said
READ MORE... →Salient to Investors: Matt Dalton at Belle Haven Investments said: Demand for munis may rebound in July as investors deploy cash from principal and interest payments and this year’s outflows will push yields high enough. The muni market has been brutal, but will turn around in the next few weeks.
READ MORE... →Salient to Investors: San Francisco added 300 tech companies since 2010, helping it earn its highest credit grade in more than a decade, amid the worst losses this year in municipal bonds and with interest rates on munis at a 15-month high. San Francisco’s jobless rate is the lowest since 2008
READ MORE... →Salient to Investors: Bill Gross at Pimco cut his local-debt allocation in the Total Return Fund by 1 percent to 4 percent in May, the lowest since July, and reduced Treasuries to 37 percent of the fund’s assets in May, but says the Fed will not raise interest rates for years, making
READ MORE... →Salient to Investors: Peter Hayes at BlackRock said: Rising demand for munis is an opportunity to scale back on lower-rated municipal debt as a strengthening economy raises the prospect that interest rates will rise in 2013. When interest rates rise, investors will move back to higher-rated securities and away from speculative-grade munis. Buy munis
READ MORE... →Salient to Investors: April is the most rewarding for investors in the municipal market – since 2009, yields on benchmark 10-year debt have fallen more in April than any other month. April has shown gains in each of the past six years. Yields on 10-year benchmark munis have fallen in April by 9 percent
READ MORE... →Salient to Investors: Harry Dent and Rodney Johnson write: We are entering the last stage of the 80-year New Economy Cycle Commodities topped in 1920, 1951 and 1980. The spending cycle is 39 years and the commodities cycle is 30 years. Gold will fall to $750 The US economy will
READ MORE... →Salient to Investors: The only winners in the financial crisis that brought Detroit to the brink of state takeover are Wall Street bankers who reaped more than $474 million from a city too poor to keep street lights working. Detroit’s population peaked at 1.85 million in 1950 and now is 700,000. Read the
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