Salient to Investors: Bloomberg Global Poll: International investors are the most bullish on the US and Japanese markets in more than 3.5 years as both economies are seen to be improving. Over 40% will reduce gold exposure over the next 6 months, close to 3 times more than those who
READ MORE... →Salient to Investors: Bill Gross at Pimco raised Treasuries holdings to 39 percent in April, the highest level since July 2010, and warned that investors face potential losses from global central banks’ unprecedented monetary stimulus. Gross said Treasuries are a better alternative than cash, and negative real interest rates, inflation, currency
READ MORE... →Salient to Investors: Paul Ashworth at Capital Economics said: US overall net worth was 550 percent of GDP in 2011 versus official GDP of near $15 trillion and national debt of $16.8 trillion – not particularly egregious. Including US holdings of foreign bonds and cross-country holdings of other types of assets,
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co. says 5 of the 7 varieties of deflation are present in the US economy. Commodity price deflation will continue as oversupply continues to swamp demand amid weak global growth and a hard landing in China, which remains export-driven. The slow global
READ MORE... →Salient to Investors: Sireen Harajli at Credit Agricole says the Fed will continue with QE and maybe start tapering off toward the end of 2013, while dollar weakness is just risk-on. Kengo Suzuki at Mizuho Securities said the Fed will continue monetary easing even as economic indicators improve, and that will weigh on the dollar.
READ MORE... →Salient to Investors: Omer Esiner at Commonwealth Foreign Exchange says a growing list of economic indicators suggest a broad-based recovery, and the market is focusing on the US recovery gaining steam, while other major economies remain in stagnation and contraction. Richard Franulovich at Westpac Banking said risk appetite is firming and we are in a potentially momentous
READ MORE... →Salient to Investors: Neil Jones at Mizuho Corporate Bank said people are looking to buy the dollar against the most vulnerable currencies, currently the pound and yen. Jones cited much uncertainty about the U.K. economic outlook. Scott Thiel at BlackRock said it sold the Pound after the Bank of England left
READ MORE... →Salient to Investors: The dollar advanced to the highest level in 3 1/2 years versus the yen on speculation an improving labor market will compel the Fed to slow stimulus even as Japan pledges to extend easing. Sean Callow at Westpac Banking said the greater the momentum in the US economy, the sooner the Fed will taper off
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co writes: Investor zeal for yield and disregard for risk favors the junkiest of the junk. When the grand disconnect between investor focus on the immense liquidity created by central banks and weak and weakening global economies becomes unsustainable, probably
READ MORE... →Salient to Investors: Sean Callow at Westpac Banking expects clear reiteration from the Fed that quantitative easing will continue for some time. Callow said the strong dollar story is tough to make right now, and the growth differential will be supportive for the euro against the dollar in the next few
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