Salient to Investors: Shane Brett at AllAboutAlpha writes: The long-term outlook for the US economy is broadly positive with housing stabilized, consumer confidence slowly returning, political instability solved by Obama’s decisive win, and as health spending increases under Obamacare. Cheap domestic energy will continue and the US will seriously expand
READ MORE... →Salient to Investors: Gold looks poor technically but its fundamentals of robust investment and central bank demand remain intact. Gold will be supported by the US political standoff about the debt ceiling and expectations of continual quantitative easing. A lack of trust regarding central bank gold reserves could lead to
READ MORE... →Salient to Investors: Real Capital Analytics said foreigners bought more UK properties worth over $9.5 million than residents for the first time in a decade, and bought 13.5 billion pounds of UK property through Oct. 12, versus 9.3 billion pounds of domestic purchases. Portfolio investments, including equities and debt, showed a 37.6 billion- pound net inflow
READ MORE... →Salient to Investors: A deepening credit crunch for European companies adds to the risk of another recession. Small and medium-sized companies that generate as much as 70 percent of the economy are starved of credit. The median of 48 analyst estimates is for a drop of 2.3 percent against the dollar by
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: Superstorm Sandy won’t reduce GDP as there is likely to be catch-up activity. There is a 60 – 70 percent probability of a mini bargain over the fiscal cliff – with contraction of 1.5 percent of GDP, which is manageable.” There is a 60 – 70 percent probability that Greece will quit the
READ MORE... →Salient to Investors: Lower implied volatility among major currencies makes investments in currencies with higher key lending rates more attractive because the risk in such trades is that market moves will erase profit. Peter Rosenstreich at Swissquote Bank said the ECB’s planned purchases of government bonds to curb the debt crisis will
READ MORE... →Salient to Investors: Paul Krugman of Princeton University said: The US and EU are nowhere close to ending the financial crisis and German-led austerity efforts may lead to a 1930s-style economic depression. The US needs maximum help from the Fed and another round of stimulus -which should be directed to distressed individuals
READ MORE... →Salient to Investors: Daisuke Uno at Sumitomo Mitsui Financial said the charts predict a fall in the euro to a 12-year low against the yen next month. On the weekly ichimoku chart, the conversion line remains below the base line; the spot price is below the cloud; and the lag line is below the spot prices. Ichimoku charts predict
READ MORE... →Salient to Investors: Andrew Wilkinson at Miller Tabak said the Fed shift was a welcomed driver for risk-loving investors, along with the ECB’s bold defense of the euro. Sebastien Galy at Societe Generale said the expected ECB actions are helping the market to move away from the risk of financing of the U.S. and the peripheral risks
READ MORE... →Salient to Investors: Michael Woolfolk at Bank of New York Mellon Corp said the market is already very short euros and overly long dollars, so expects reversion to a more neutral basis. Peter Gorra of BNP Paribas said the European debt crisis will be solved sooner than people think. Geoffrey Yu at UBS said many people are resigned
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