Salient to Investors: The MSCI Emerging Markets Index is up 22 percent since its October 2011 low versus the 33 percent advance for the MSCI World Index – the first time since 1998 they have underperformed during a global rally. Bulls say emerging markets will lead the next stage of the global rally
READ MORE... →Salient to Investors: Harry Dent and Rodney Johnson write: We are entering the last stage of the 80-year New Economy Cycle Commodities topped in 1920, 1951 and 1980. The spending cycle is 39 years and the commodities cycle is 30 years. Gold will fall to $750 The US economy will
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: The Fed’s record monetary stimulus has forced central banks from Mexico to Brazil to Korea to Japan to follow suit as artificially low US interest rates has put upward pressure on several currencies, threatening the competitiveness of their economies. Central banks are carrying
READ MORE... →Salient to Investors: Peter Temin at MIT and David Vines at Oxford write: The global economy succeeded in the second half of the 20th century because US power could recruit countries to cooperate to maintain prosperity, and again at the end of the 19th century led by Britain. The US
READ MORE... →Salient to Investors: Japan and India, Asia’s biggest energy consumers after China, are closer to unlocking natural gas deposits trapped in ice below the seabed that may prove bigger than the world’s known fossil-fuel reserves. Shale is found in only certain parts of the globe, carbon frozen with water – methane hydrates –
READ MORE... →Salient to Investors: Jeremy Grantham at Grantham Mayo Van Otterloo says: The US is muddling through reasonably well in the short-term, but long-term we are in a slowdown unappreciated by most economists – because they are not interested in the long-term. US growth won’t ever return to previous levels because
READ MORE... →Salient to Investors: Copper analysts are the most bullish in 5 weeks on optimism the global economy is strengthening versus hedge funds the most bearish since August. Goldman Sachs recommended buying copper for a 16 percent gain to $9000 in 6 months as China copper imports increase. Barclays says China
READ MORE... →Salient to Investors: Danish central bank Governor Lars Rohde said world central bankers need to plan for monetary tightening to avoid feeding asset bubbles. Rohde said there is no short-term alternative to global easing, given the state of the real economy. Jacob Graven at Sydbank A/S said it will be the same
READ MORE... →Salient to Investors: Bank of America Merrill Lynch indexes show the gap in yields between linkers and governments reached a 21-month high of 1.70 percent. Economists forecast consumer-price gains of 2.72 percent in 2013, in line with the 10-year average. Index-linked securities are favored because sovereign-debt returns are being erased
READ MORE... →Salient to Investors: Jim Rogers says: The US economy is poised for a major crash. Do not trust any of the positive news coming from any world government. Everybody is printing money but it is artificial, has never been good for anybody and cannot continue. We are in a fool’s paradise
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