Salient to Investors: Ian Lyngen at CRT Capital said Q1 data confirms the US economy is on a better footing, and for the benchmark yield to rise to the median year-end estimate of 2.25 percent, employment must improve, Europe problems subside, and the end of QE in sight. William O’Donnell at Royal Bank
READ MORE... →Salient to Investors: Steven Ricchiuto at Mizuho Securities USA expects rates to stay around current levels and says the economy is going nowhere quickly and the headwinds keep changing. Robin Marshall at Smith & Williamson Investment Mgmt said the market finds it hard to argue what is happening in Cyprus is
READ MORE... →Salient to Investors: April is the most rewarding for investors in the municipal market – since 2009, yields on benchmark 10-year debt have fallen more in April than any other month. April has shown gains in each of the past six years. Yields on 10-year benchmark munis have fallen in April by 9 percent
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co writes: There is an important distinction between good deflation caused by excess supply – as after the Civil War and in the 1920s – and bad deflation created by deficient demand – as in the 1930s and Japan over the last
READ MORE... →Salient to Investors: Paul Farrell writes: We are at a market top and an economic turning point. Bernanke’s non-stop cheap-and-easy-money printing presses are loved by Wall Street banks but are bad for the rest of America. His reappointment – certain to become Obama’s greatest domestic blunder – so shocked Nassim Taleb
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co writes: The current fiscal and monetary offsets to the powerful deflationary forces are temporary. When deleveraging ends and normal economic growth resumes, the Fed will be forced to eliminate the huge excess reserves. General price deflation is the likeliest
READ MORE... →Salient to Investors: Jay Pelosky at 2Z Advisory says investors should focus first on where there is flexibility by policy makers, and the best places to invest in order are: Japan has twin engines of fiscal and monetary policy. UK government has made it clear they will not move off austerity but
READ MORE... →Salient to Investors: Alan Blinder at Princeton said: Bernanke has done a very good job and will stay if he wants it. Has an A+ on keeping inflation low and D- on keeping unemployment low. His Lehman Bros decision was wrong and was a turning point after which everything fell apart. Fed is
READ MORE... →Salient to Investors: David Leonhardt at The New York Times said: Fed will continue QE until unemployment falls to 6.5%. Democrats may want Bernanke replaced since a Republican has been Fed Chairman for over 20 years. Obama likes Bernanke and both have underestimated the length and depth of this weak economy.
READ MORE... →Salient to Investors: Hedge funds are the most bullish on 10-yr Treasuries since 2007. Jason Evans at NineAlpha Capital said it is expensive to fight the Fed – whether yields have begun a structural rise is the multibillion dollar question. Evans says the cost of being under-invested in Treasuries eats you
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