Salient to Investors: Jason Rogan at Guggenheim Partners said the market was completely caught off guard by Bernanke, who clearly does not think the economy is ready for the Fed to pull back, and that means stronger Treasuries. Futures investors see a 43 percent chance that the Fed will increase
READ MORE... →Salient to Investors: EPFR Global data showed global equity funds attracted the largest inflows since at least 2005 last week. Wellian Wiranto at Barclays expects further inflows given that appetite has stabilized quite significantly and tapering was postponed, while it is s hard to see tapering in October. Wiranto said
READ MORE... →Salient to Investors: Tim Hartzell at Sequent Asset Mgmt said the underlying data may turn weaker despite 5 years of easy money, and stocks are dependent on this monetary stimulus. Economists predict the US will expand 1.6 percent in 2013 and 2.7 percent in 2014. 24 of 41 economists expect
READ MORE... →Salient to Investors: Win Thin at Brown Brothers Harriman said the knee-jerk buying of emerging-markets stocks has run out of steam for now, but tapering still looms. Joseph Lavorgna at Deutsche Bank Securities said the Fed will likely begin tapering in December and end QE by mid-2014 and increase its
READ MORE... →Salient to Investors: Warren Buffett said: The Fed is the greatest hedge fund in history because of its ability to profit from bond purchases while accumulating a balance sheet of more than $3 trillion, probably generating $80 billion or $90 billion a year in revenue for the US government, not
READ MORE... →Salient to Investors: 30-year mortgage rates were at 4.86 percent last week. Robert Bostrom at Greenberg Traurig said the Fed finally realized that housing is fading in anticipation of the tapering and even higher rates, and could not taper without irreparable damage to the housing recovery. Anish Lohokare and Timi
READ MORE... →Salient to Investors: Mark Spindel at Potomac River Capital said Janet Yellen would welcome a little more inflation because of the costs of too-low inflation are high, but would not let inflation run away. Stephen Oliner at the American Enterprise Institute said Yellen has very little tolerance for inflation above
READ MORE... →Salient to Investors: Jeffrey Currie at Goldman Sachs said their 3 and 6-month targets for gold is $1,300 and then decline to $1,050 in 2014 as the Fed tapers and economic data improve, perhaps to below $1,000. Currie said Goldman expects an initial reduction of $10 billion a month in
READ MORE... →Salient to Investors: Jeffrey Currie and Damien Courvalin at Goldman Sachs said: Gold will fall into 2014 as the Fed tapers on the back of an acceleration in US activity and a less accommodative monetary-policy stance. Goldman’s economists expect tapering next week. Goldman maintained 3 and 6-month targets for gold at $1,300,
READ MORE... →Salient to Investors: Stanley Druckenmiller said: If the Fed were to end QE it would be a big deal for the financial markets, as indicated by the sell-off in bonds and emerging markets in the past few months on the mere hint that the Fed might taper. Fed purchases have subsidized all
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