Salient to Investors: Jan Hatzius at Goldman Sachs said the private sector surpluses is the mirror image of public sector deficits. Hatzius says the economic crisis will end in 2013, followed by US growth over 3%. After 2013, the US economy will benefit significantly from a relevering private sector (lower savings) with the worst of the fiscal drag coming to
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: Chris Rupkey at Bank of Tokyo-Mitsubishi UFJ said the economy is growing moderately, and the disappointing pace of consumer spending is less worrisome as other sectors of the economy are doing better, like housing. The median economist expects consumer spending to be at a 1.9 percent pace in Q3, and GDP to
READ MORE... →Salient to Investors: Andrea Guzzi at IST Investmentstiftung fuer Personalvorsorge said the global economy is recovering and healing, thanks to the US and the emerging markets – more people are becoming wealthy, less and less are poor. Guzzi said many countries have oversized banking sectors. Gala Prada at Fiatc Mutua de Seguros y Reaseguros expects
READ MORE... →Salient to Investors: Two-thirds of investors surveyed by Bloomberg described the global economy as either stable or improving. the most since May 2011. The investors said the US offered the best opportunity over the next year for the eighth straight quarter. Goldman Sachs recommended buying Indian stocks. Read the full article at http://www.bloomberg.com/news/2012-11-29/asian-stocks-gain-with-oil-on-u-s-budget-optimism-gold-rallies.html
READ MORE... →Salient to Investors: In a Bloomberg global poll of investors: 75% expect a short-term agreement to avert the fiscal cliff, 6% expect to go over the cliff and into a recession. 40% expect financial markets to rise after a short-term tax-and-spending deal, 28% see no significant market reaction, 26% say markets would fall. 7% see no sweeping accord, 50%
READ MORE... →Salient to Investors: Copper shortages will extend into half1 2013 due to an accelerating China more than doubling the pace of growth in global consumption even as mines extract a record amount of metal. Barclays predicts demand will outpace supply in half 1 2013 by more than all copper in LME warehouses, before a
READ MORE... →Salient to Investors: Ding Zhijie at the University of International Business and Economics said: China has noticeably reduced purchases of dollars from local banks to allow commercial banks to trade among themselves, which may cap China’s foreign-exchange reserves and consequently its demand for US government debt. China’s official foreign-exchange reserves will be stable
READ MORE... →Salient to Investors: Anthony Valeri at LPL Financial said the market is definitely not concerned about the US becoming Greece. Long term, projected increases in health-care costs will make the US budget path unsustainable. The CBO says debt as a percent of the economy exceeds 70 percent for the first time since
READ MORE... →Salient to Investors: Housing doesn’t change the trajectory of the economy because it has contributed only 2.5% of US GDP after before the recession. Before the recession housing peaked around 6% and the average is in between. Watch the video at http://www.bloomberg.com/video/does-the-housing-sector-really-help-grow-gdp-NnDP7KDpRC60tTIrJlj7_w.html
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