Salient to Investors: The longest-dated Treasuries yield less than half the 6.8% average over the past five decades but are in line with the norm for the prior half-century. David Jones said the notion that Treasury yields are too low is shaped by players who began their careers in the wake
READ MORE... →Salient to Investors: The median economist expects the jobless rate by June 2015 to be very near the 5.2%-5.5% range considered full employment, while the Fed’s preferred inflation gauge will not have budged from its current 1.4%. 27 of 50 economists say unemployment at 5.5% or lower would prompt the Fed to
READ MORE... →Salient to Investors: Investors still believe that whenever stocks and risk assets fall, the authorities will act to limit the losses to ensure they don’t take economies down with them. Hans Redeker et al at Morgan Stanley said comments last week by Bullard and Haldane left markets with the impression
READ MORE... →Salient to Investors: Paul Tudor Jones at Tudor Investment Corp is believed to have said: US stocks will outperform other equity markets for the rest of 2014. The bubble in global credit will burst one day. If we maintain the status quo on QE, we will end up like Greece
READ MORE... →Salient to Investors: Peter Hayes at Blackrock said nobody really expects rates to rally significantly from here and everybody is waiting for a pullback. Hayes said the muni market is overpriced and said sell into strength and wait for better opportunities. Munis have rallied in each of the first 9 months
READ MORE... →Salient to Investors: David Einhorn at Greenlight Capital is believed to have recommended renewable power companies on the declining cost of solar energy and rising price of electricity, while betting against French sovereign debt. Read the full article at http://www.bloomberg.com/news/2014-10-20/greenlight-s-einhorn-said-to-back-solar-stocks-at-robin-hood.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Matt Maley at Miller Tabak said that when people sell liquid US equities stock market when they cannot sell their illiquid assets – the reason for last week’s sharp market sell-off. The IMF said the proportion of corporate-debt securities held by mutual funds has doubled since 2007 to
READ MORE... →Salient to Investors: Warren Buffett said his firms’ pensions funds are all-equities with no bonds. Buffett said he assumes Pimco would have all kinds of professional money managers managing money so would not have changed just because Bill Gross left. Buffett and deputy investment managers, Todd Combs and Ted Weschler,
READ MORE... →Salient to Investors: Thomson Reuters said US junk bond funds had the biggest withdrawal last week since a record withdrawal during the first week of August, bringing the net amount redeemed in 2014 to $15.6 billion. Lipper said leveraged loans had their 12th straight week of outflows, bringing the total for
READ MORE... →Salient to Investors: Paul Krugman writes: Bill Gross’s fall is a symptom of depression denial syndrome: the refusal to acknowledge that the rules are different in a persistently depressed economy. Since 2008, the US has been stuck in a liquidity trap – a desired saving glut with no place to
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