David Stockman writes: Wall Street believes the sideways market of the last 6 months is a healthy market correction in time, not price, and that markets cannot go down unless there is a recession and that none is remotely in sight. We are in month 74 of the current recovery, beyond
READ MORE... →Salient to Investors: Michael Snyder writes: Global debt is at record highs, too big to fail banks have never been more reckless, and global financial markets have never been more primed for a collapse. Most people lack the patience to wait for long-term trends to play out so if the stock market is
READ MORE... →Salient to Investors: China last reported its gold reserves in 2009 at 1,054.1 tonnes, just 1% of the value of its foreign currency reserves, and less gold reserves than Germany, the IMF, Italy and France, and a fraction of those of the US. Bloomberg Intelligence believes China’s reserves exceed 3,510 tonnes,
READ MORE... →Don’t Worry About the Bull Market; Worry About the Dollar: Richard Bernstein – ThinkAdvisor 06-22-15
Salient to Investors: Richard Bernstein at Richard Bernstein Advisors writes: The bull market is intact. Markets rise after the Fed starts raising as earnings trump rising rates, and there is no end of cycle behavior, like excessive leverage or a big buildup in inventories except for energy. The MSCI European
READ MORE... →Salient to Investors: Christine Lagarde at the IMF said: The Fed should delay any rise in interest rates until 2016 and wait for more tangible signs of wage or price inflation. Pockets of vulnerability in the US economy could cause serious trouble for the wider economy. The IMF predicts US growth of 2.5%
READ MORE... →Salient to Investors: Fareed Zakaria said: Globalization and the information revolution is unstoppable. China cannot be stopped from growing and trading, and Africa from deepening its integration into the global system. The average tariff in the developed world is 3%. China’s average tariff is under 10% versus 40% in 1985. It’s
READ MORE... →Salient to Investors: Strategists expect the euro to decline to $1.18 by the end of 2015. Over 90% of respondents surveyed in December predict the ECB will expand the supply of euros by purchasing sovereign bonds in 2015, versus 57% in November. 44 of 59 analysts expect the euro to fall against the dollar – the
READ MORE... →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
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