Salient to Investors: Drew Matus at UBS Securities said the July employment report is reasonably consistent with moderate growth, but doesn’t change the outlook for further Fed easing on Sept. 12-13. Read the full article at http://www.bloomberg.com/news/2012-08-04/payroll-gains-exceeding-forecasts-signal-sustained-u-s-growth.html
READ MORE... →Salient to Investors: Louis Navellier says: Bill Gross couldn’t be more wrong in predicting lower future equity returns and that equities cannot return more than U.S. GDP growth because the stock market is much more attuned to earnings than to U.S. GDP growth. Nearly half of the S&P 500’s revenues are generated globally versus 30 percent 10
READ MORE... →Predictions: Ibbetson Associates said that the next 20 years are not likely to yield a bond bonanza, favors stock investing – the S&P 500 stock index will return an average 7.6 percent, and long-term government bonds 4.1 percent. Joseph Davis at Vanguard expects future bond returns to be muted, and stock returns formidable. Davis
READ MORE... →Salient to Investors: PIMCO’s Bill Gross said a debt trap remains even after the European agreement, continues to avoid the debt of nations including Spain and Portugal in favor of U.S. Treasuries and mortgage securities. Gross said both the peripherals and the core union nations have too much debt, whose marginal cost
READ MORE... →Salient to Investors: The bid-to-cover ratio for 7-year Treasuries securities was the lowest since October. Marc Ostwald at Monument Securities said it’s very important to focus on the personal consumption and expenditure. Ira Jersey at Credit Suisse said it’s hard to like these yields unless you think there’s going to be a significant
READ MORE... →Salient to Investors: Global investors are buying emerging-market debt and shares of well capitalized companies. Anne Richards at Aberdeen Asset Management likes balance sheet strength, says many European equities are high risk and U.S. Treasuries are overvalued. Richards says investors are underestimating the health of Asian issuers – Likes Indonesian sovereign debt, Latin American
READ MORE... →Salient to Investors: PIMCO’s Bill Gross said the debt trap remains even after the European agreement, continues to avoid Spanish and Portuguese debt in favor of U.S. Treasuries and mortgage securities, Gross. Matt McCormick at Bahl & Gaynor said Europe and the economy raises more questions than answers for investors – after Facebook, they want problem-free IPOs. Read
READ MORE... →Predictions: Bill Gross said: It will take economies and financial markets decades to normalize after the debt crisis, keeping U.S. securities the safest bet for investors. This is an authentic debt crisis and can only be ultimately cured by default or printing more money to inflate it away. A debt crisis can’t be cured with more debt
READ MORE... →Predictions: Mike Lenhoff at Brewin Dolphin Securities said China is prepared to ease, which will be good for European markets, particularly cyclical stocks – investors sense a more determined spirit to push through tangible measures in Europe. Julian Callow at Barclays Capital forecasts ECB rates will be cut on July 5. Read the full article
READ MORE... →Salient to Investors: U.S. government debt continues to be the premier haven for investors from global financial market turmoil. Brian Edmonds at Cantor Fitzgerald is doubtful rates will shoot higher any time soon. Tsutomu Komiya at Daiwa Asset Management said Treasuries are the safe haven, the economy is improving, but the growth rate
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