Salient to Investors: Nobel Laureate Edmund Phelps warned against the dangers of EU membership saying we are still learning about the European experiment and to what extent it is going to succeed or fail. Phelps cited huge blanks and huge gaps in the euro area – each country is subject
READ MORE... →Salient to Investors: Barry Knapp at Barclays predicts the Fed will maintain its current rate of asset purchases into 2014, as the labor market is again the Fed’s focus. Knapp said an improving labor market rather than accelerating inflation made the Fed end its last 3 easings – May 1983, February 1994, Feb-to-August, 2004. In
READ MORE... →Salient to Investors: Fareed Zakaria said: The fundamental rule of international relations is that as a country becomes powerful, others gang up to bring it down – viz the Habsburg Empire to Napoleonic France to Germany to the Soviet Union. The one great exception in modern history is the US,
READ MORE... →Salient to Investors: Scott Sumner at Bentley University writes: Europe is in recession because the ECB unknowingly wants a recession. By trying to hold the highly flawed CPI including oil and VAT well below 2% will inevitably produce the anemic NGDP growth that will inevitably produce recession. The wacky UK-style
READ MORE... →Salient to Investors: The OECD said: The gap between rich and poor widened more in the 3 years to 2010 than in the previous 12 years. The richest 10% of society in the 33 OECD countries received 9.5 times that of the poorest in terms of income, versus 9 times in 2007.
READ MORE... →Salient to Investors: Bloomberg Global Poll: International investors are the most bullish on the US and Japanese markets in more than 3.5 years as both economies are seen to be improving. Over 40% will reduce gold exposure over the next 6 months, close to 3 times more than those who
READ MORE... →Salient to Investors: Tech, energy and financial stocks are the most inexpensive industries in the S&P 500 with multiples of less than 14 times earnings. US tech stocks, the second-best industry of the past decade, are at 13 times projected earnings, the lowest level versus the S&P 500 in at least 7 years. Analysts
READ MORE... →Salient to Investors: William Pesek writes: Japan has taught us that slashing interest rates to zero and beyond is much easier than returning them to normalcy. In Japan, credit spreads mean little, the underlying assets on which they are based are drugged up on monetary stimulants, bank balance sheets get muddied, it
READ MORE... →Salient to Investors: Alan Higgins at Coutts expects another 7 to 10 percent on equities worldwide in 2013. Greg Fuzesi at JPMorgan said today’s PMI makes an ECB rate cut more likely, and expects one in June. Read the full article at http://www.bloomberg.com/news/2013-04-23/european-stock-futures-rise-stmicro-michelin-may-move.html. Click here to receive free and immediate email alerts of the
READ MORE... →Salient to Investors: Michael Purves at Weeden said the markets are starting to process softening economic news and a correction. 72 percent of the 111 S&P 500 companies so far reporting have beaten earnings estimates. Thomas Nyheim at Christiana Trust said housing is showing modest improvement. William C. Dudley at
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