Salient to Investors: A Bloomberg poll of investors, analysts and traders showed: 40% see the euro-area economy as improving, more than 4 times the number in May 40% see the world economy as strengthening, the most since January 2011. 52% expect stocks to produce the best return over the next
READ MORE... →Salient to Investors: Stanley Druckenmiller said: The poverty rate for seniors over the last 35 years has dropped from 35% to 9%, while their wealth has dramatically increased The numbers of seniors is about to explode and there is no way we can pay for what we have promised them. The US
READ MORE... →Salient to Investors: Julian Brown at JLT Employee Benefits said: UK pension funds are seeking alternatives to index-linked gilts for inflation-protected cash flows as the securities are very expensive and giving negative real yields. Ten-year index-linked gilts have yielded less than zero since September 2011. The funds are diversifying into assets such as infrastructure and
READ MORE... →Salient to Investors: Scotiabank and Bank of America said India, Brazil, Russia and Indonesia have intervened in foreign-exchange markets, and dollar sales mean liquidating Treasuries. Ali Jalai at Scotiabank said there is a lack of buyers in the Treasury market, while selling by central banks to back up their currencies exacerbates
READ MORE... →Salient to Investors: Wall Street’s biggest firms are predicting intensifying bond losses in emerging markets, where borrowing costs have already soared to the highest in more than 4 years versus US corporate debt. Jeffrey Rosenberg at BlackRock is not convinced we have seen the worst in terms of flows out
READ MORE... →Salient to Investors: Terry Sandven at US Bank Wealth Mgmt sees clear cumulative evidence of economic improvement, and expects the Fed to taper in September. Ron Florance at Wells Fargo Private Bank said unemployment is going in the right direction, just the wrong velocity, so the Fed will still taper,
READ MORE... →Salient to Investors: Stuart Hoffman at PNC Financial Services said employment was strong enough to convince central bankers to taper by $10 billion a month. Hoffman said the headcount was weak, but income earned from wages and longer hours is positive. The median economist expects the Fed to taper $10
READ MORE... →Salient to Investors: Bill Gross at Pimco said the Fed is committed to taper, which will be lite: it will probably reduce its assets purchases by $10 billion and focus on Treasury bonds. Mohammed El-Erian said there are no great choices for the Fed at this point, and today’s jobs number tells
READ MORE... →Salient to Investors: Joshua Shapiro at Maria Fiorini Ramirez said today’s jobs numbers are soggy and at odds with other data that shows things are OK. Shapiro said recent reports show pockets of strength as well as pockets of weakness in the economy. The participation rate decreased to 63.2 percent, the
READ MORE... →Salient to Investors: Michael Gurka at Spectrum Asset Mgmt says the market should be considerably lower. The first clue is market resistance at the 3% yield. Gurka sees a lot of overlaps with the 1987 crisis, while today’s jobs number does not make sense and shows what a tangled web we
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