Salient to Investors: Global growth is changing but we are not on the verge of a global recession. UK and US growth is solid, and the Eurozone is staging a weak recovery. China’s stock market drop says little about the health of the Chinese economy and matters little to investors outside China,
READ MORE... →Salient to Investors: More and more analysts are pointing to problems in China and other markets as posing a real threat to the American economy. Raoul Pal at the Global Macro Investor said the global GDP pie is shrinking and cites the dollar’s upward move against nearly all emerging-market currencies. In
READ MORE... →Salient to Investors: David Stockman writes: The S&P 500 has sliced through both the 50-day and 200-day moving averages. 2130 on the S&P 500 will prove to be a generational high. CAT, China, European luxury brands, the NASDAQ Biotech Index are shorts. Expect the Fed to announce they are well short of
READ MORE... →Salient to Investors: Bill Bishop at Sinocism said: China’s stock market has historically been irrelevant both to the domestic Chinese economy and the global economy. China has tarnished its reputation with its bungled response to its stock market plunge. Damien Ma at the Paulson Institute said it is premature to conclude the
READ MORE... →Salient to Investors: China is primarily behind the apparent panic in the global economy. Recent Chinese economic data contradicts its official forecast of 7% growth. The Wall Street Journal says China could move to stimulate its economy by the end of August or in early September, as high technology and entrepreneurship
READ MORE... →Salient to Investors: David Stockman writes: The real danger comes from the official institutions who have lapsed into empty ritualism and contrivance while the global economy and financial system becomes more unstable by the day. No sane person would inject $95 billion of new debt into busted Greece, or consider another round of fiscal stimulus
READ MORE... →Salient to Investors: David Stockman writes: The bull market is dead, yet stock option addicted corporate executives are buying their own drastically over-priced shares hand-over-fist. Corporate stock buybacks and dividends are back to late 2007 levels of all of net income, lured by 80 months of ZIRP and $3.5 trillion of debt monetization by
READ MORE... →Salient to Investors: Fareed Zakaria said: The Iran nuclear agreement is flawed, but has the toughest terms ever negotiated and sets back Iran’s nuclear program more than any serious military campaign would. Automatic re-imposition of sanctions can be triggered unilaterally by the US. Iran gets sanctions relief regardless because allies will not extend sanctions
READ MORE... →Salient to Investors: Dani Rodrik at Harvard said: Emerging markets may be seen to be in deep trouble but do not deserve the doom-and-gloom treatment they are getting. Stronger economic headwinds ahead will make it easier to distinguish countries that have strengthened economic and political fundamentals from those that have relied
READ MORE... →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
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