Salient to Investors: quick cash edge Jonathan Weil writes: China is a kleptocracy run by, and for the benefit of, the Communist Party elite, who have allowed securities fraud to flourish, and routinely obstructed overseas regulators’ investigations. Tiny research firm Muddy Waters has done more to expose Chinese stock scams than
READ MORE... →Salient to Investors: Stephen King at HSBC said we are moving away from a US or Europe led world to a world led by China, which will make its biggest-ever contribution to global growth in 2014. King said China’s growth will rise to 8.6 percent in 2013 versus 7.8 percent in 2012, and 5.4 percent for the
READ MORE... →Salient to Investors: JPMorgan report that stocks have retraced the pattern from the last two big market rallies and now face a decline in 2013 of over 50%. Nouriel Roubini at NYU says there is a chance of an economic “perfect storm” in 2013 due to a worsening eurozone crisis,
READ MORE... →Salient to Investors: Rob Haworth at US Bank Wealth Mgmt said 2012 saw much liquidating by hedge funds, but there’s an incentive to reverse that because of growth in emerging markets and especially China – it’s going to be a good year for commodities. The median economist expects China to accelerate for at
READ MORE... →Salient to Investors: John-Paul Smith at Deutsche Bank said stocks in the major developing markets will again lag global equities in 2013 – China has focused on increasing the pool of buyers for Chinese assets, rather than boosting the role of free markets and privately run companies in the broader economy. Smith prefers cash to BRIC
READ MORE... →Salient to Investors: Hedge funds et al reduced net-long positions across 18 US futures and options last week to the lowest since June 19. Gold holdings reached a 4-month low, copper holding dropped for the first time in five weeks, and investors were the most bearish on natural gas since May. Walter Hellwig at BB&T
READ MORE... →Salient to Investors: Just 3 of the Immortals’ 103 direct descendants and their spouses led or still run state-owned companies with combined assets of $1.6 trillion in 2011, the equivalent of more than a fifth of China’s GDP. At least 18 own or run entities linked to companies registered offshore, many
READ MORE... →Salient to Investors: William Pesek writes: Woodward-and-Bernstein style tactics are helping to unearth the rot that has taken hold in China – princelings that are reaping outsized benefits from China’s growth, causing inequality levels at pre-Communist levels. One of modern history’s greatest wealth grabs is delaying the reforms needed – of the
READ MORE... →Salient to Investors: China’s new elite class, known as princelings, is fueling public anger over unequal accumulation of wealth, unfair access to opportunity and exploitation of privilege. The Immortals’ grandchildren are players in private equity amid China’s integration into the global economy. 26 ran or held top positions in state- owned companies that dominate
READ MORE... →Salient to Investors: Ken Rogoff at Harvard says: The global economy is growing more slowly than everybody wants – The improving US is one of the bright spots with only 2% growth. China is slowing, India slowing dramatically. US trend growth rate is 2.5%. Need 4%-5% growth for a sustained period to
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