Salient to Investors: Jim Rogers said: When investing, don’t follow the crowd Most government numbers are made up. China has problems with housing and inflation as the US did in the 19th century when it was growing rapidly. Every country that grows rapidly has problems. The US had recessions and
READ MORE... →Salient to Investors: Nouriel Roubini writes: QE is not creating credit for the real economy, but instead boosting leverage and risk-taking in financial markets. Issuance of risky junk bonds under loose covenants and with excessively low interest rates is increasing, the stock market is reaching new highs, despite the growth slowdown,
READ MORE... →Salient to Investors: Tomoya Masanao at Pimco said: Investors should be wary of high-yield borrowers as slowing growth in Asia threatens profitability. China will average 6 percent to 7.5 percent annual growth during the next 5 years versus 9 percent annual for the past 5. Companies in Asia outside Japan almost tripled junk bond sales
READ MORE... →Salient to Investors: Bill Gross at Pimco cut holdings of Treasuries but says the Fed is unlikely to reduce QE in the near-term, and says he is sticking with bonds as long as Fed does. Gross has been advising investors to sell riskier assets and buy government debt, including inflation-linked securities and nominal
READ MORE... →Salient to Investors: Jim O’Neill said: The US is returning to normality so expect 10-yr T-yields to rise toward 4 percent in the next couple of years as the 30-year bull market in bonds comes to an end. There will be quite ugly days. The global economy is in the early stages of
READ MORE... →Salient to Investors: Jim O’Neill writes: When the Fed starts to taper, expect turbulence in financial markets, especially for overpriced assets. We are headed to a normal 10-yr T-yield of 4 percent or more versus 2.2 percent now, and to a return of the equity culture. mcd-grp.com/cat/ In 1994, Greenspan made it clear that
READ MORE... →Salient to Investors: Standard & Poor’s said: It increased the US’s AA+ credit rating outlook to stable from negative based on receding fiscal risks, and the US has a less than 1-in-3 likelihood of a downgrade in the near term due to tentative improvements like the deal to avoid the
READ MORE... →Salient to Investors: S&P said the U.S. has a less than 1-in-3 likelihood of a downgrade of its AA+ credit rating in the “near term”, and sees tentative improvements including the deal to avoid the fiscal cliff. Demand for Treasuries at auction has slackened amid signs of improvement with the
READ MORE... →Salient to Investors: Franklin Templeton Asset Mgmt (India) and Nomura Asset Mgmt predict rupee bonds will extend the longest run of gains in more than a decade as inflation below 5 percent adds room for interest-rate cuts. Nomura says easing price pressures will allow India to add to the most aggressive
READ MORE... →Salient to Investors: Japan’s GPIF will reduce its holdings of Japanese bonds to 60 percent from 67 percent, increase local shares to 12 percent from 11 percent, increase foreign bonds to 11 percent from 8 percent, and increase overseas shares to 12 percent from 9 percent. Makoto Suzuki at Okasan Securities said the
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