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: Eswar Prasad at Cornell and Brookings said: The US economic numbers looks good and the recovery is strengthening, but the rest of the world is weakening and there is a real fear Ebola could become something bigger. Policy-makers in the rest of the world have no room
READ MORE... →Salient to Investors: David Bloom et al at HSBC said: A sustained rise in the dollar may be insufficient to push inflation back to target in countries struggling with the threat of deflation, but it could buy them time and help prevent inflation expectations becoming permanently detached from target. History
READ MORE... →Salient to Investors: Hertta Alava at FIM Asset Mgmt said Hong Kong is usually very safe so the riots are unexpected, while Russia’s economy is getting weaker. Dmitry Polevoy at ING said the market is getting closer to panic, while the ‘ghost’ of peak external debt payments in September and
READ MORE... →Salient to Investors: Michael McFaul at Stanford University sees long-term damage to Russia from Putin’s new direction. Anders Aslund at the Peterson Institute for Intl Economics sees a similar shortfall in Russia’s 2014 growth to 2013’s growth of 1.3%, and versus IMF’s 2013 forecast of 3.9%. Alexei Kudrin expects Russia to post zero
READ MORE... →Salient to Investors: China’s deepening slump is re-establishing the link between currencies and commodities, weakening the Australia dollar, New Zealand kiwi and Canadian loonie on concern their economies will slow and outweigh their relatively high interest rates. Shahab Jalinoos at Credit Suisse said you can only resist gravity for so
READ MORE... →Salient to Investors: Andrew Swan at BlackRock said: Blackrock has an overweight position in Korea stocks as a lot of negativity is already priced in and the market is so cheap. The South Korean equity market could be in the early stages of bottoming. A recovery in domestic demand may help
READ MORE... →Salient to Investors: Robin Brooks at Goldman Sachs said: The dollar’s rise is small in historical and economic terms as many traders wait/hope for a pull-back which won’t come. Euro-dollar levels are not remotely pricing in the kind of balance sheet expansion that Draghi talked about in September, so future ECB press conferences
READ MORE... →Salient to Investors: 10-yr T-notes are at the widest yield gap, 0.89%, to their G-7 counterparts since June 2007. Charles Comiskey at Bank of Nova Scotia said people are being forced to buy Treasurys because both emerging-market currencies and stocks are getting hammered. Adrian Miller at GMP Securities said investors are bullish
READ MORE... →Salient to Investors: Jeffrey Gundlach at DoubleLine Capital said: The Shanghai Composite Index is worth a speculation, but his favorite stock market long-term is India. Yields on 10-yr US Treasuries may reach 2.65% this year. Does not own any foreign currency bonds – the biggest risk in a rise in yields
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