Salient to Investors: Michael Feroli at JPMorgan Chase said the jobs report is a setback for the labor market and the economy and validates Bernanke’s concern. Bill Gross said the Fed will likely ease further through “open-ended” purchases of Treasuries and mortgages and extend its pledge to keep interest rates low
READ MORE... →Salient to Investors: Bruce Stout at Aberdeen Asset Management said: Central bankers are going round and round in the credit cycle believing that reducing interest rates will cure the illness that’s completely different from the past. We are no further ahead defining the main issue: the crisis of public sector indebtedness, which will take
READ MORE... →Salient to Investors: Pimco’s Bill Gross said: Investors face an age of inflation, a headwind for both stocks and bonds. The cult of equity was dying, and long-term equity returns of 6.6 percent above inflation – the Siegel Constant – won’t be seen again. Institutional investors will find the highest returns in countries with faster growth
READ MORE... →Salient to Investors: BlackRock said rising life expectancy is pressuring the elderly to seek higher investment returns, trumping the past wisdom of moving into fixed income which was valid when life expectancy was much lower. High-quality bonds yield almost nil because of risk-aversion, so won’t make savings last longer after retirement – e.g. German 2-year government bonds yields fell
READ MORE... →Salient to Investors: Profits are moving U.S. equity prices more than any time since the bull market began 3 1/2 years ago. Bloomberg data show: S&P 500 companies rose or fell an average of 4.4 percent the day after releasing results since July. Daily swings in the index narrowed to 0.4
READ MORE... →Salient to Investors: John De Clue at U.S. Bank Wealth Management said Europe continues to weaken. Stephen Wood at Russell Investments said the Fed is showing high sensitivity to the labor market. Brian Peery at Hennessy Funds said it doesn’t take much to push the market toward the negative side Read the full article
READ MORE... →Salient to Investors: Berkshire Hathaway has been drastically reducing his exposure to stocks that depend on consumer purchasing habits, including Johnson & Johnson and Intel. John Paulson in Q2 2012 dumped 14 million shares of JPMorgan Chase, his fund’s entire position in Family Dollar and Sara Lee. George Soros recently sold
READ MORE... →Salient to Investors: Mark Luschini at Janney Montgomery Scott said the decent jobs report is not enough for the Fed to act imminently yet not so good that the Fed could still act. Michael Shaoul of Marketfield Asset Management said the jobs report allows people to continue to be patient with the domestic economy,
READ MORE... →Salient to Investors: Mohamed El-Erian at PIMCO sais the economy is healing gradually. Hedge-fund managers et al reversed from net-short to net-long in 10-year note futures for the week ending July 31. Gary Madich at J.P. Morgan Asset Management said the jobs number shows we are not going into a recession or Armageddon. Fed Bank of Richmond
READ MORE... →Salient to Investors: Michael Lynch at Strategic Energy & Economic Research said anything that points to economic growth boosts oil. John Kilduff at Again Capital said the unemployment-rate increase is legitimate and should induce the Fed to take action. If Syria blows up or the ECB announces a rescue of Spain then oil prices
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