Salient to Investors: Steven Hansen at Econinterest writes: The positive reaction by the market to the FOMC minutes effectively disproves the theory that a withdrawal of QE is necessarily market negative. QE is not the only dynamic, or even the driving dynamic, in the market rally – other dynamics include inflows
READ MORE... →Salient to Investors: Nathan Sheets at Citigroup said last week’s employment report has put ending QE discussions on hold. Atlanta Fed President Dennis Lockhart believes it’s too early for the Fed to consider reducing the pace of QE. Joe Hinrichs at Ford Motor said gains in housing starts are highly correlated
READ MORE... →Salient to Investors: Rex Macey at Wilmington Trust Investment Advisors said investors out of the market and the nervous are starting to feel it’s safe to go back in the water, that there is a recession around the corner. Macey expects earnings surprises to the upside. Ryan Larson at RBC Global Asset
READ MORE... →Salient to Investors: Bill Gross at Pimco said: He raised Treasury holdings to 33 percent of assets in March, the highest level since July 2012, and lowered mortgage holdings to 33 percent, the lowest level since August 2011. cash advance businessespayday loans in la Japan’s unprecedented purchase program may force investors into
READ MORE... →Salient to Investors: Kyle Bass at Hayman Advisors, who has been betting on a collapse in the Japanese bond market for at least 3 years, said Japanese government bondholders’ reaction to the BOJ’s stimulus may foreshadow a broader selloff. Bass said this is the first deviation of the sanctity of that
READ MORE... →Salient to Investors: Jan Hatzius said the US economy is losing steam and the current $85 billion pace of purchases is very likely to continue for the time being. Michael Cloherty at RBC Capital Markets said the significant move in Treasuries may be too much, and does believe the widely expected dramatic change in capital flows from the
READ MORE... →Salient to Investors: Drew Matus at UBS Securities said the Fed will not repeat its error of the past 3 years and continue with QE through the summer, and having been fooled multiple times by slumps in the economy they will be gun-shy on the exit strategy. William C. Dudley at the New York
READ MORE... →Salient to Investors: Peter Hayes at BlackRock said: Rising demand for munis is an opportunity to scale back on lower-rated municipal debt as a strengthening economy raises the prospect that interest rates will rise in 2013. When interest rates rise, investors will move back to higher-rated securities and away from speculative-grade munis. Buy munis
READ MORE... →Salient to Investors: International investors bought more Treasuries in Q1 2013 than in any other start to a year since 2009. China has been buying Treasuries at the fastest pace since 2011. Wan-Chong Kung at Nuveen Asset Mgmt said the US is standing out as a place of relative growth, strength and
READ MORE... →Salient to Investors: David Stockman said: The Fed has flooded equity markets with cash while weakening the Main Street economy and the phony money has created an unsustainable bubble economy that will begin to falter within a few years. When it bursts, there will be no 2008-style bailouts and America will begin an era
READ MORE... →