Salient to Investors: Equity markets will trend higher even if economic activity continues slow for a prolonged period. Any market correction over 10% is a buying opportunity. Asset markets are critical in the current environment and markets will not crash or collapse for the foreseeable future. The banking system has been flooded with enough
READ MORE... →Salient to Investors: More than a million of the college graduate class of 2008 have gone back home. The number of 26-year-olds living with parents is up 46 percent since 2007: a quarter of American adults between the ages of 18 and 30 now live with parents. Read the full article at
READ MORE... →Salient to Investors: Charles Elson and Craig Ferrere at the University of Delaware say CEOs can’t readily transfer their skills from one company to another, debunking the “pay ’em or lose ’em” defense. They say the idea that companies must constantly compare their executives’ compensation with that of similar companies is bogus. They find little
READ MORE... →Salient to Investors: The need to constantly adapt is the new reality for many workers, including virtually everyone whose job is touched by computing.. Going back to school for months or years is not realistic for many workers, so they turn to bite-size instructional videos, peer-to-peer forums, and virtual college
READ MORE... →Salient to Investors: BlackRock said rising life expectancy is pressuring the elderly to seek higher investment returns, trumping the past wisdom of moving into fixed income which was valid when life expectancy was much lower. High-quality bonds yield almost nil because of risk-aversion, so won’t make savings last longer after retirement – e.g. German 2-year government bonds yields fell
READ MORE... →Salient to Investors: Courts outside the U.S. tend to discount jury verdicts because they lack legal reasoning typically included in judges’ rulings. Peter-Michael Weisse at the Wildanger law firm said the farther away you get from Europe, the less influence foreign rulings have. John Swinson at King & Wood Mallesons said the
READ MORE... →Salient to Investors: South Africa’s mine violence is the worst since the end of apartheid in 1994 caused by one of the world’s biggest wealth gaps – worse than Honduras and the Central African Republic. 60 percent of black South Africans live in poverty and 28 percent are jobless. Professor Dirk Kotze at the
READ MORE... →Salient to Investors: Professor Robert Gordon at Northwestern University said: The U.S.’s best 250 years are behind it as economic growth may gradually sputter out, contradicting the nearly universal view promoted by Robert Solow and others that economic growth is a continuous process that will persist forever. Future growth in GDP per capita
READ MORE... →Salient to Investors: Ruy Teixeira at the Center for American Progress said ethnic groups historically vote in clusters and this favors President Obama mightily. The American minority population surprisingly grew by 30 percent over the last decade versus 1 percent for whites – up 3 percent alone since 2008. Read the transcript
READ MORE... →Salient to Investors: Stockpiles of the biggest crops will decline for a third year on drought in three continents. U.S. crops are in the worst condition since 1988, heat waves are battering European crops and India’s monsoon rainfall is 20 percent below normal. Goldman Sachs, Macquarie Group and Credit Suisse say crops will
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