Salient to Investors: Paul B. Farrell writes: 2014 is a virtually guaranteed disaster just waiting to ignite. Bubbles are everywhere. Kit Juckes at Societe Generale says all three worldwide financial bubbles in the last three decades – The Asian Bubble in the early ‘90s, Dot-com Bubble of the late ‘90s
READ MORE... →Salient to Investors: Martin Feldstein at Harvard writes: Historically rapid monetary growth fuels high inflation. Germany’s hyperinflation in the 1920s and Latin America’s in the 1980s. More moderate shifts in US monetary growth rates fuel inflation. In the 1970s, money supply grew at an average annual rate of 9.6% and
READ MORE... →Salient to Investors: Kit Juckes at Societe Generale says each of the last three significant financial bubbles in the past 30 years have been fueled by the Fed keeping interest rates below the economy nominal GDP growth the fed funds rate. Juckes says in the past when year-over-year Nominal GDP
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co. writes: Short stocks and commodities, go long the dollar and Treasuries – if stocks continue to decline, the safety of Treasuries and investment-grade bonds will outweigh concerns about the end of QE. World economies are growing slowly at
READ MORE... →Salient to Investors: Frederic Neumann at HSBC said: Asia’s growth has just downshifted to a less spectacular pace in coming years. Asia’s 1997 financial crisis won’t repeat as dissimilarities outweigh the parallels. Current account positions are mostly in surplus, which should cushion the blow from an outflow of capital, and banking systems
READ MORE... →Salient to Investors: Bond managers are telling investors the worst may be over for T-bonds after 10-year yields rose to a 22-month high. Jeffrey Gundlach at DoubleLine Capital says July will not be the same type of month and 10-yr yields will be meaningfully lower by the end of 2013 Gundlach said
READ MORE... →Salient to Investors: Boston Consulting says Mexico is beginning to beat China as a manufacturing base despite its higher crime rate: a plus for the US because Mexican factories use 4 times as many American-made components as Chinese factories do. Mexico’s 4 key advantages: Manufacturing wages, adjusted for Mexico’s superior worker
READ MORE... →Salient to Investors: Justin Wolfers at University of Michigan writes: Jan Hatzius at Goldman Sachs estimates that it takes $1 trillion in bond purchases to move long-term interest rates by 0.4 percent. So the market’s recent overreaction to Benanke’s tapering comments is equivalent to cutting back on QE by $1 trillion versus $255
READ MORE... →Salient to Investors: Nassim Nicholas Taleb says: The UK and the US have a fantastic history in risk-taking, in trial and error, without shame in failing and starting again. We must honor the “ruined” risk-takers with as much respect as we do soldiers – there is no such thing as
READ MORE... →Salient to Investors: Jim Rogers writes: Malaysia is making positive dramatic changes. All Asean countries are going in the right direction. Pay Day Direct Lenders When the huge currency turmoil comes, bet with the creditors and not the debtors. There is no such thing as a sound currency and no
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