Salient to Investors: Alexander Friedman at UBS says: What Fed has done is not unexpected and the market reacted because it was ahead of itself. All the Fed was saying was that the US is doing OK, that the data is trending as it should, and that it has confidence
READ MORE... →Salient to Investors: Only 3 emerging-market stock pickers avoided losing money in half1 by making prescient currency bets and buying companies insulated from economic swings and government interference. They recommend Philippine retailers, Chinese Internet companies and Indian drugmakers. Lewis Kaufman Thornburg Developing World Fund said there are many going wrong. Kaufman is overweight
READ MORE... →Salient to Investors: Jim O’Neill writes: Emerging-market gloom is overdone. I disagree with the view that as the US recovers, the global cost of capital will rise, holding back investment, that avoiding the next crisis is the best that most emerging economies can do. India could teach the pessimists a lesson. India
READ MORE... →Salient to Investors: Nouriel Roubini writes: QE is not creating credit for the real economy, but instead boosting leverage and risk-taking in financial markets. Issuance of risky junk bonds under loose covenants and with excessively low interest rates is increasing, the stock market is reaching new highs, despite the growth slowdown,
READ MORE... →Salient to Investors: The IMF says: The global economy will expand 3.3 percent in 2013 versus its 3.5 percent forecast in January, and 4 percent in 2014. The euro area will contract 0.3 percent in 2013 versus its forecast of a 0.2 percent retreat in January. Expect a 3-speed recovery led by emerging
READ MORE... →Salient to Investors: Martyn Davies at Frontier Advisory said there’s a shift in power from the traditional to the emerging world, with much geo-political concern about this in the western world. Foreign direct investment into BRICS nations accounted for 20 percent of global FDI flows versus only 6 percent in
READ MORE... →Salient to Investors: Junk bonds of companies in emerging markets are the most expensive in 7 years relative to the US, raising concerns the threat of asset bubbles is increasing. Emerging market businesses have been adding debt even as profit growth slows and borrowing costs stop tumbling. JPMorgan said funds investing in
READ MORE... →Salient to Investors: Bond investors are lowering their outlook for inflation in developing markets to a 9-month low. Alessandro Bee at Bank Sarasin sees moderate growth compared to recent years, which should keep inflation in check and create a really nice environment for local bond markets. Bank of America said investors see
READ MORE... →Salient to Investors: Global investment banks based in Europe and the US are losing market share in emerging economies to smaller domestic competitors. Freeman & Co. said the share of fees for US and Western European banks in Latin America, the Middle East, China, India, Russia and Eastern Europe fell
READ MORE... →Salient to Investors: Gaelle Blanchard at Societe Generale said there’s a run of risk aversion on concerns for growth. Martial Godet at BNP Paribas CIB said global earnings growth should be stronger than 2012 for emerging-market companies, particularly China, while commodity and oil prices are resilient, which helps Russia. The MSCI emerging-markets
READ MORE... →