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: David Stockman writes: Laszlo Birinyi says S&P 3200 will be reached by 2017 because there is no reason it cannot keep rising. Since first meeting Birinyi in 1986, I do not ever recall when he was not bullish on equities. His call is wrong because the central bank fed 30-year bull run
READ MORE... →Salient to Investors: Fareed Zakaria said: New America reports that, since 9-11, 74 people have been killed in America by terrorists vs. over 150,000 killed in gun homicides. ShootingTracker.com says that in the first 207 days of 2015 America had 207 mass shootings. Gunpolicy.org says America’s gun homicide rate is 50 times
READ MORE... →Salient to Investors: David Stockman writes: The central banks have shot their wad after increasing their aggregate balance sheet from $3 trillion to $22 trillion over the last 15 years, which falsified financial prices. The coming deflation will bring a plunge in corporate profits and collapsing prices of vastly inflated risk asset classes. The
READ MORE... →Salient to Investors: David Stockman writes: Total non-farm labor hours are no higher than in Q4, 2007 and only 1% higher than in the spring of 2000, meaning we have added virtually no new employment to the US economy over 2 business cycles. Over the 29 quarters after the 1990 business
READ MORE... →Salient to Investors: Linda Yueh at Oxford University said: The Chinese stock market is not very important to ordinary Chinese because at most only 50 million households invest in it, and they average less than 10 to 15% of their assets. Retail investors follow the herd so volatility is endemic in
READ MORE... →Salient to Investors: Michael Pento at Pento Portfolio Strategies writes: In not allowing participants to sell stocks, China has fallen off the free market wagon. The same China that believes that economies grow by building empty cities. China’s actions are the antithesis of capitalism and free markets so it shocking to
READ MORE... →Salient to Investors: Fareed Zakaria said: History shows that the more countries integrate within the global community, the less incentives they have to be spoilers. Iran and the US share common interests on the threat from ISIS, the stability of Iraq and Afghanistan. The most successful and dominating countries in
READ MORE... →Salient to Investors: The annual CPI reported figure of 0.1% is a lie and has become a manipulated statistic using academic theories to systematically under-report the true level of inflation – between 4% and 10% – in order to cut annual cost of living adjustments to Social Security and other
READ MORE... →Salient to Investors: David Stockman writes: Obama’s Keynesian policies are deplorable. The Iranian nuclear deal could mark a decisive turning point in rolling back US destructive interventionism and imperial pretensions in the Middle East and the world. Iran is not hell-bent on obtaining nuclear weapons as shown by the 2007 National Intelligence
READ MORE... →