Salient to Investors: Viktor Shvets and Chetan Seth at Macquarie said: Emerging markets and economies are in a worse situation than in the 1997 Asian financial crisis because they now face far longer, more painful and insidious disease with limited or no cures or exits, punctuated by occasional significant flare-ups. The effect
READ MORE... →Salient to Investors: David Stockman writes: A growing chorus of investors blamed last week’s stock market sell-off on esoteric but increasingly influential trading strategies pioneered by hedge funds like Bridgewater. Hedge fund performance has benefited from broken capital markets rigged by the Fed. Thesecasino gamblers bought every one of the
READ MORE... →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: 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
READ MORE... →Salient to Investors: Fareed Zakaria said: There are 1.6 billion Muslims in the world of which perhaps 30,000 are members of ISIS. Sheri Berman at Barnard College says ideologies succeed when they replace failed ideas. ISIS has benefited from the failure of Pan Arab-ism, Republicanism, nascent efforts at democracy, economic liberalism and
READ MORE... →Salient to Investors: Zhu Haibin at JPMorgan Chase said the lack of good unemployment data is the main reason why China still focuses so much on GDP, and since China is more concerned about employment and inflation, it refrains from big stimulus. Zhu said China’s current registered unemployment rate is
READ MORE... →Salient to Investors: Mark Wiseman et al at Goldman Sachs said: LNG projects in Africa, Canada and Australia face delays or cancellations as global demand slows, US output increases, nuclear reactors restart in Japan, China’s success in shale-gas E&P, and economic conditions in ASEAN. Global demand will compound at 5%
READ MORE... →Salient to Investors: Analysts say the easing of tensions in Ukraine offers little respite to Russia as low oil prices threaten a recession. 58% of 19 economists say Russia needs its main export crude blend to trade at $100 per barrel or more to avoid a recession, while 19% say
READ MORE... →Salient to Investors: BIS said unprecedented stimulus by central banks and historically low volatility levels across asset classes have made it more likely that emerging markets will destabilize. BIS said governments and companies from Latin America to Asia have boosted borrowing in local and foreign currencies, leaving them more vulnerable when
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