Salient to Investors: Fareed Zakaria said: Both the American left and right are concerned about the declining mobility of the American dream. Countries that invest more heavily in children’s health care, nutrition, and education, well-being more generally end up with a much stronger ladder of opportunity and access than America.
READ MORE... →Salient to Investors: US companies have issued $241 billion in junk bonds this year, more than twice the amount during the same period in 2007. US stocks are near record highs. Investors’ use of borrowed money to buy stocks is up one-third in the past year to a near record. Housing prices are surging in
READ MORE... →Salient to Investors: William D. Cohan writes: Janet Yellen favors staying the course on QE. Larry Summers apparently prefers to begin winding down QE. The Yellen-Summers debate is the latest example of a decades-long tug-of-war between those inside The Club (Summers) and those excluded from it (Yellen). Almost all of
READ MORE... →Salient to Investors: Caroline Baum writes: Private foreign investors sold a net $67 billion of Treasuries in June, a record and the second consecutive monthly outflow, and sold agency securities, corporate bonds and equities. The US Treasury is looking at much higher borrowing costs as 41 percent of the debt has
READ MORE... →Salient to Investors: Paul Dwyer writes: Small business is NOT the engine of US job creation. Census Bureau data show that small businesses destroy almost as many jobs as they create. There is more geographic and economic diversity among high-tech formations than for the private sector as a whole, where
READ MORE... →Salient to Investors: Caroline Baum writes: Paul Krugman at Princeton says Milton Friedman has virtually vanished from the policy discourse and a few decades from now, historians will regard him as little more than an economic footnote. I believe Krugman, not Friedman, will end up as the footnote. Krugman’s claim
READ MORE... →Salient to Investors: The decline at Bridgewater Associates’ All Weather fund and similar funds shows allocating assets between stocks and bonds can leave investors overexposed to rising interest rates. Ramin Nakisa at UBS Investment Bank said June’s sell-off in Treasuries and inflation-linked bonds was just a dress rehearsal for the volatility awaiting
READ MORE... →Salient to Investors: Peter Orszag at Citigroup writes: Over the past 3 years, the number of job openings has risen almost 50 percent, but actual hiring has gone up by less than 5 percent. Peter Newland at Barclays says one reason is the mismatch between the work that companies need
READ MORE... →Salient to Investors: Kenneth Rogoff at Harvard said: Janet Yellen and Lawrence Summers qualify to replace Bernanke because of their dovishness about placing too much weight on stable inflation when unemployment is far above its longer-run level. Aggressive monetary stimulus is needed, even at the cost of moderate price increases, because with weak
READ MORE... →Salient to Investors: Author Chrystia Freeland said Putin is playing the classic authoritarian leader’s playbook and is chiefly concerned with what is good for Putin, not Russia. Julia Ioffe at The New Republic said on the one hand Russia wants to be part of the West and seen as an
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