Salient to Investors: Brett Arends writes: It is not clear if high debt levels lead to slower growth, or result from slower growth, or that the two have only a loose connection, but we cannot borrow and print money indefinitely with no consequences whatsoever. Rogoff and Reinhart got their math
READ MORE... →Salient to Investors: William Pesek writes: Japan has taught us that slashing interest rates to zero and beyond is much easier than returning them to normalcy. In Japan, credit spreads mean little, the underlying assets on which they are based are drugged up on monetary stimulants, bank balance sheets get muddied, it
READ MORE... →Salient to Investors: 73 percent of the 237 S&P 500 index members so far reporting have beaten earnings estimates, 56 percent missed on revenue estimates. 24 of 40 economists expect the ECB to cut its benchmark interest rate by 0.25 percent to 0.5 percent next week. Greg Woodard at Manning & Napier said the market is looking
READ MORE... →Salient to Investors: Alan Higgins at Coutts expects another 7 to 10 percent on equities worldwide in 2013. Greg Fuzesi at JPMorgan said today’s PMI makes an ECB rate cut more likely, and expects one in June. Read the full article at http://www.bloomberg.com/news/2013-04-23/european-stock-futures-rise-stmicro-michelin-may-move.html. Click here to receive free and immediate email alerts of the
READ MORE... →Salient to Investors: Kei Katayama at Daiwa SB Investments said QE has led to a bubble in bonds, and at some point, the Fed will have to end the policy. Economists expect 10-yr rates to climb to 2.26 percent in the US and to 0.73 percent in Japan by Dec. 31 2013.
READ MORE... →Salient to Investors: Arne Rasmussen at Danske Bank said the outlook for the UK economy and the pound are bad and today’s jobs data is disappointing. Rasmussen says investors should not underestimate the possibility the BOE will act aggressively to support growth, and expects the pound to fall much further. Mike Amey
READ MORE... →Salient to Investors: Michael Franzese at ED&F Man Capital Markets said stocks are falling because everyone seems to see panic in the central banks when people thought there would be growth – a reversal of the beginning of the year when people thought higher rates were on the horizon, but there
READ MORE... →Salient to Investors: The IMF said: Budget deficits in advanced economies will narrow at a faster pace in 2013 than in 2012 even as countries including the US and Japan lack clear plans to reduce their debt. Fiscal shortfalls will shrink to 4.7 percent of GDP in advanced nations in 2013, the narrowest
READ MORE... →Salient to Investors: Laurence D. Fink at BlackRock said we have not seen any large major change in attitude in bonds are not seeing the same investor appetite for long-dated bonds, which will persist for some time. Fink sees no evidence of a large-scale rotation into stocks from bonds as global and high-yield
READ MORE... →Salient to Investors: Tom Tucci at CIBC World Markets said we are range bound, with the lower end at 1.8-to-1.65 percent. Guy LeBas at Janney Montgomery Scott said the most significant long-term indicator has been the drop down in CPI, which on the margin makes Treasuries more attractive. Peter Jolly at National Australia
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