Salient to Investors: Harry Dent and Rodney Johnson write: We are entering the last stage of the 80-year New Economy Cycle Commodities topped in 1920, 1951 and 1980. The spending cycle is 39 years and the commodities cycle is 30 years. Gold will fall to $750 The US economy will
READ MORE... →Salient to Investors: International purchases of US stocks, bonds and other financial assets slowed for the first time in four months in January. Thomas Simons at Jefferies said the stock market trend and better global financial market conditions supports more outflows from Treasuries by private investors. Read the full article
READ MORE... →Salient to Investors: Sireen Harajli at Credit Agricole says the Fed will continue with QE and maybe start tapering off toward the end of 2013, while dollar weakness is just risk-on. Kengo Suzuki at Mizuho Securities said the Fed will continue monetary easing even as economic indicators improve, and that will weigh on the dollar.
READ MORE... →Salient to Investors: The only winners in the financial crisis that brought Detroit to the brink of state takeover are Wall Street bankers who reaped more than $474 million from a city too poor to keep street lights working. Detroit’s population peaked at 1.85 million in 1950 and now is 700,000. Read the
READ MORE... →Salient to Investors: Stephen Jones at Kames Capital bought US Treasuries without a currency hedge, saying the pound will decline further against the dollar, and the prospect of the pound rallying is remote. Kames expects the Fed to keep its monetary stimulus. Read the full article at http://www.bloomberg.com/news/2013-03-13/pound-extending-drop-leads-kames-to-buy-treasuries-without-hedge.html Free email alerts of articles as soon as
READ MORE... →Salient to Investors: In 2012, Norway’s sovereign wealth fund, the world’s largest: near doubled investments in Australian bonds and equities increased sovereign debt fourfold and added provincial debt securities increased investments in emerging markets including Turkey, Russia and Taiwan lowered debt holdings of U.K. and France. Read the full article at http://www.bloomberg.com/news/2013-03-13/norway-fund-boosts-aussie-debt-holdings-four-times-adds-states.html Free email alerts
READ MORE... →Salient to Investors: Research by Bradford DeLong at Berkeley and Lawrence Summers shows that with short-term interest rates near zero, the multiplier is at its most powerful, so increased spending could be unusually potent in reviving growth and pay for itself and bring lower deficits in the long run. DeLong said the budget cuts
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Holdings of Treasuries to 28 percent of assets in February, after a six-month high of 30 percent in January, and cut mortgage holdings to 36 percent, the lowest level since August 2011, and cut non-US developed nations’ debt to 11 percent. Corporate credit and high-yield
READ MORE... →Salient to Investors: Jeremy Grantham at Grantham Mayo Van Otterloo says: The US is muddling through reasonably well in the short-term, but long-term we are in a slowdown unappreciated by most economists – because they are not interested in the long-term. US growth won’t ever return to previous levels because
READ MORE... →Salient to Investors: Larry Trefz writes: The rally will continue until sentiment turns for the worse, then expect a correction of over 10%. Warren Buffett sees says stocks are good value and cheaper than other forms of investment, while the dumbest investment is long-term government bonds. Stan Druckenmiller sees a
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