Salient to Investors: The IMF said: The world economy will grow 3.5 percent in 2013 and 4.1 percent in 2014, versus 3.2 percent in 2012. The euro region will shrink 0.2 percent in 2013, led by Spain and slowing growth in Germany, and grow 1 percent in 2014. The euro region poses a
READ MORE... →Salient to Investors: Exports from the US are set to pick up in 2013 as global growth strengthens. Gary Hufbauer at Peterson Institute for Intl Economics said competitive US industries include agriculture, medical supplies and aviation, and exports are a very high-paying sector of the US economy – jobs are more steady in export-oriented
READ MORE... →Salient to Investors: Nicholas Pardini at Nomadic Capital Partners writes: US and European stocks are no longer the safest bets. Investors should expect subpar real returns from the US economy and positive long run returns from emerging markets. The biggest economic trend of the 21st century is the global convergence of
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: 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: Jeffrey Gundlach at DoubleLine Capital says: The first phase of the coming debacle was the 27-year buildup of corporate, personal and sovereign debt to 2008. The third phase will be deeply indebted countries and companies defaulting sometime after 2013. Buy gemstones, art and commercial real estate and other hard assets. Chinese
READ MORE... →Salient to Investors: Owi Ruivivar at Goldman Sachs Asset Mgmt said: If surging demand continues for Asian bonds and distorts prices for a long period of time, the likelihood of asset bubbles increases because prices do not fully reflect economic fundamentals. Supply and demand have become the dominant drivers of bond valuations rather
READ MORE... →Salient to Investors: Investors are growing wary of publicly traded securities as interest rate cuts at central banks helped inject liquidity into markets, bolstering bonds and stocks. Scott Kalb at KLTI Advisors said: Sovereign wealth funds are increasing their allocations to alternatives Institutional investors are focusing on hedge funds and private
READ MORE... →Salient to Investors: IMF says: Risks of a slowdown are alarmingly high primarily because of policy uncertainty in the US and Europe. Global growth will be 3.3 percent in 2012 and 3.6 percent in 2013, with a 15 percent chance of recession in the US in 2013, 25 percent in Japan, and
READ MORE... →Salient to Investors: Joachim Fels at Morgan Stanley said: It won’t take much to tip the world into a global recession Central banks in Europe, China, U.K. and Japan will further ease, thereby supporting asset prices, preventing deflation, helping avert sovereign defaults and maintaining economic growth. Central banks on their own cannot bring a sustainable
READ MORE... →