Salient to Investors: quick cash edge Jonathan Weil writes: China is a kleptocracy run by, and for the benefit of, the Communist Party elite, who have allowed securities fraud to flourish, and routinely obstructed overseas regulators’ investigations. Tiny research firm Muddy Waters has done more to expose Chinese stock scams than
READ MORE... →Salient to Investors: Geithner’s replacement by Lew will end a period of unusually strong ties between the Treasury and the Fed. Mark Calabria at the Cato Institute said Lew won’t be as defensive of the Fed as Geithner would be. Brandon Barford at ACG Analytics said with Geithner’s departure, Tarullo is
READ MORE... →Salient to Investors: Warren Buffett said banks have rebuilt capital and no longer poses a threat to the economy – capital ratios are huge and excesses on the asset side are largely gone . Berkshire invests in at least 4 of the 7 biggest U.S. lenders by assets, including Wells Fargo, Bank of America, Goldman Sachs,
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: History shows that presidents’ most ambitious ventures often create as many problems as they solve. Barbara Perry at the University of Virginia said presidents act first and think later about the long-term consequences. best packages Obama’s long-run budget forecasts call for exploding deficits beyond the customary 10-year planning period
READ MORE... →Salient to Investors: Investors, economists and policy makers are starting to warn Germany is turning a blind eye to its own weaknesses. Irwin Collier at Freie Universitaet said it is clear things have to change at home too. The DAX Index rose 29 percent in 2012, its best in 9 years. Juergen
READ MORE... →Salient to Investors: JPMorgan report that stocks have retraced the pattern from the last two big market rallies and now face a decline in 2013 of over 50%. Nouriel Roubini at NYU says there is a chance of an economic “perfect storm” in 2013 due to a worsening eurozone crisis,
READ MORE... →Salient to Investors: Martin Ellis at Halifax expects continuing broad stability in house prices nationally in 2013 and end the year close to where they begin. Nationwide Building Society says UK house prices may decline modestly in 2013. Blerina Uruci at Barclays expects the subdued trend in 2012 to continue in 2013 and then gradually
READ MORE... →Salient to Investors: Mark Mobius at Templeton Emerging Markets says the Malaysian administration has been very good for the markets and will continue to be so, and is buying more Malaysian shares on the country’s economic growth prospects. Mobius is possibly cutting back on Indonesian banks and Indian natural-resources stocks due to valuations. The Jakarta Finance Index
READ MORE... →Salient to Investors: The era of increasingly cheap money is showing signs of ending in the mortgage bond market. Bill Gross at Pimco said bond investors should anticipate reduced returns as bets on mortgage securities are over in terms of the capital appreciation – expect total returns in 2013 of 3 to 4 percent. Brean
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