Salient to Investors: The Dow looks primed to finish the week less than 100 points below where it opened Monday, just before the government shutdown started. David Ader at CRT Capital said we are all surprised the markets have not sent more of a signal. On the day Congress initially
READ MORE... →Salient to Investors: John C. Bluedorn, Joerg Decressin and Marco E. Terrones at the IMF said: Slumping asset prices show a recession is probably on its way for the G-7 economies as declining asset prices are significantly associated with the beginning of an economic contraction. From 1970 to 2011, stocks
READ MORE... →Salient to Investors: Bill Gross at Pimco said: If you trust only one thing, trust that once QE is gone and the policy rate becomes the focus, that fed funds will stay lower than expected for a long, long time. The market and the Fed are wrong is forecasting fed
READ MORE... →Salient to Investors: Ethan Harris at Bank of America said: The decline in the jobless rate in August to 7.3 percent was due to Americans giving up on finding work and is forcing the Fed to struggle with how to minimize it as a policy benchmark without damaging their credibility.
READ MORE... →Salient to Investors: Bank of America Merrill Lynch and Mizuho Securities say the bubble forming in the Japanese government bond market risks further expansion as central bank purchases shield the notes from a global rout. Benchmark 10-year JGB yields were the lowest in the world at 0.67 percent versus 2.65
READ MORE... →Salient to Investors: William C. Dudley at FRB of New York said: We need to see continued improvement in the labor market and other good economic news before tapering. The FOMC are committed to not allowing inflation to rise above its 2 percent target by any significant margin because we
READ MORE... →Salient to Investors: Justin Wolfers writes: The risk of deflation is greater than the risk of explosive inflation. The Bureau of Economic Analysis revised its estimates for the personal consumption expenditures price index – the index the Fed targets aiming for inflation of 2 percent – to 0.1 percent negative
READ MORE... →Salient to Investors: Nouriel Roubini at NYU writes: The rout in the emerging market asset classes is past midway but more is ahead as the recovering West points to Fed tapering. Many stages in the shift in the US and global monetary and financial conditions are to come within the
READ MORE... →Salient to Investors: Bill Gross at Pimco said investors should not trust the opinion of Moody’s Investors Service on the US’s Aaa rating and should instead trust S&P, Fitch & Egan Jones for credit ratings. Gross said Moody’s and the US Treasury are one happy family over the US debt limit
READ MORE... →Salient to Investors: Don Hodges at Hodges Funds said the noise is disruptive to people doing anything with great confidence, and any market this strong over the last few weeks is capable of a pullback that shakes people a little. A Bloomberg poll counted 44% expecting the economy to remain
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