Salient to Investors: Bruce Stout at Aberdeen Asset Management said: Central bankers are going round and round in the credit cycle believing that reducing interest rates will cure the illness that’s completely different from the past. We are no further ahead defining the main issue: the crisis of public sector indebtedness, which will take
READ MORE... →Salient to Investors: Pimco’s Bill Gross said: Investors face an age of inflation, a headwind for both stocks and bonds. The cult of equity was dying, and long-term equity returns of 6.6 percent above inflation – the Siegel Constant – won’t be seen again. Institutional investors will find the highest returns in countries with faster growth
READ MORE... →Salient to Investors: Fareed Zakaria said: Max Weber singled out China and Japan as cultures particularly prone to poverty and stagnation, but were the world’s fastest-growing two large economies over the past five decades. Another powerhouse, India, was once seen as having a culture totally incompatible with economic success. China was stagnant for centuries. What changed was their
READ MORE... →Salient to Investors: Fareed Zakaria said: Outsourcing jobs to ensure a company’s survival is acceptable and is how you run a business. America needs and already has a tax and regulatory structure that creates strong incentives for private businesses to flourish. The great shift in the U.S. economy over the past
READ MORE... →Predictions: Bill Gross said: It will take economies and financial markets decades to normalize after the debt crisis, keeping U.S. securities the safest bet for investors. This is an authentic debt crisis and can only be ultimately cured by default or printing more money to inflate it away. A debt crisis can’t be cured with more debt
READ MORE... →Salient to Investors: For the first time in 13 years, the real, ruble and rupee are weakening the most among developing-nation currencies, while the yuan has depreciated more than in any other period since its 1994 devaluation. Investors are fleeing the BRICs, after Brazil’s consumer default rate rose to the
READ MORE... →Salient to Investors: The MSCI World Energy Index is down 9.6 percent in 2012, more than any other group, and is up 45 percent since the market bottom in 2009, less than any other industry with earnings tied to economic growth. U.S. energy stocks are at the cheapest levels relative to the
READ MORE... →Salient to Investors: Moody’s John Lonski says G-7 bond rates indicate the markets don’t expect economic growth to exceed 3 percent. Blackrock’s Jeffrey Rosenberg says the greed that produces bubbles is absent. Pimco’s Bill Gross says global bond markets are turning ‘Japanese’. UBS’ George Magnus says we are replicating the Japanese experience. Bianco Research’s James
READ MORE... →Predictions: Asianomics Ltd. said China’s surprise first interest rate cut since 2008 and loosened financial controls are a sign of panic, will fail to boost the Chinese economy, which is close to recession, that the world is headed for recession. Chinese banks need to raise lending rates because their cost of funds is going up. Read the full article
READ MORE... →Salient to Investors: Global monetary-policy makers are trying to stem the steepest global slowdown since the recession ended in 2009. Predictions: David Hensley of JPMorgan Chase expects global growth of 1.7 percent this quarter and 2 percent next, as weak as anything in the past two decades outside the Great Recession. Expects the Fed to keep benchmark rate at
READ MORE... →