Salient to Investors: Bill Gross at Pimco said: The increase in unemployment in January gives bond yields room to decline. Central bank stimulus has made bond markets bubbly. Avoid longer-maturity governments because of the inflation risk from quantitative easing et al. As long as check writing in the trillions continues, it’s a foundation for
READ MORE... →Salient to Investors: Christopher Sullivan at United Nations Federal Credit Union said we have settled at higher yields as the market is suspicious of low bond yields when risk assets are rallying – the market is focusing more on positive indicators of moderate strength than negative numbers. Thomas di Galoma at Navigate
READ MORE... →Salient to Investors: Alan Gayle at RidgeWorth Capital said investors need to see a bad quarter or two for their bond investments before they move back into stocks. Patrick Maldari at Artio Global Mgmt says bonds, particularly corporates, are still attractive as S&P 500 returns will remain lackluster, while economic growth
READ MORE... →Salient to Investors: Art Cashin at UBS said if investors don’t jump in based on the bullish market move, then traders will be looking for any trigger and start to worry about the sequester. Hogan said everybody’s looking for something to cause a pull back. Tom Lee at JP Morgan
READ MORE... →Salient to Investors: Mitch Tuchman at MarketRiders writes: Google Trends shows people are getting interested in stocks again, and the market rally has unleashed media stories about small investors getting back into equities. Stocks were never safe, nor will be. The bond market implies all kinds of risks that most
READ MORE... →Salient to Investors: Suanjin Tan at BlackRock said the avalanche of new deals has investors fatigued, and continued home-price restrictions and a slowing economy means being selective. Tan sees a big mindset shift in the past year with fears of a huge property market collapse in China gone: the risks are there but very few
READ MORE... →Salient to Investors: Investors and regulators say unscrupulous mortgage bond sales tactics are widespread in a market lacking transparency, where even Wall Street’s most sophisticated mortgage investors remain at risk. Marilyn Cohen at Envision Capital Mgmt said managers who depend on dealers to find securities and quote prices over the
READ MORE... →Salient to Investors: Paul Zemsky at ING Investment Mgmt sees much momentum for stocks even after such a good start to the year: earnings are strong, world economies are bottoming and valuations are attractive. EPFR Global report $39 billion moved into equity mutual funds in 2013, more than double the comparable period in
READ MORE... →Salient to Investors: Treasuries are trailing stocks by the most since October 2011. Hiromasa Nakamura at Mizuho Asset Mgmt said the current rise in yields is due to Fed easing, while investors expect money to go into riskier assets, and equity markets are rising. Bill Gross at Pimco said unprecedented central
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co writes: Investor zeal for yield and disregard for risk favors the junkiest of the junk. When the grand disconnect between investor focus on the immense liquidity created by central banks and weak and weakening global economies becomes unsustainable, probably
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