Salient to Investors: Money managers said fears that the US economy will slow as Obama and Congress fail to avert the fiscal cliff are overblown. Volatility across markets has declined, signaling investors are less worried about the economic outlook. Bettina Mueller at Deutsche Bank is astonished the market is turning so quickly, and expects
READ MORE... →Salient to Investors: Brazilian equities saw the biggest outflows in the past two months since Lehman’s collapse in 2008. EPFR Global said emerging-market equity funds attracted $10 billion during the same period, while Mexican stock funds had inflows of $179 million. Brazil’s domestic stock funds had inflows of $2.5 billion so far in 2012 versus
READ MORE... →Salient to Investors: Gilles Sitbon at Sycomore Asset Mgmt said people are waiting for one thing that could make the market go down – if nothing happens, then you can get a grind higher. Money managers said fears the economy will slow as Obama and Congress fail to avoid the fiscal cliff next
READ MORE... →Salient to Investors: Two states voting to legalize recreational use of marijuana marks the beginning of the end of the war on drugs – which has cost $1 trillion over the past four decades. The OECD says the US has over 3 times as many prisoners per capita as it did in 1980, and 10 times as many as
READ MORE... →Salient to Investors: Alice Rivlin at Brookings said the lesson of Europe is, don’t wait until you’re in a crisis to act and austerity is not a good prescription for weak economies. Rivlin said the US has the luxury the Europeans don’t, no pressure in the financial markets. Mohamed El-Erian at Pimco said the fiscal cliff would
READ MORE... →Salient to Investors: Masood Ahmed at the IMF said Iran’s currency crisis will deepen economic contraction this year by more than the IMF had estimated, while inflation may accelerate to 25.2 percent, the highest in four years. Theodore Karasik at the Institute for Near East and Gulf Military Analysis said Iran is not going to
READ MORE... →Salient to Investors: William D. Cohan writes: We were either naive or stupid to believe Obama’s “change you can believe in” included Wall Street. Robert Rubin protegés were appointed to the three most important economic positions in Obama’s first term: Treasury secretary, national economic adviser, and director of the OMB. Other
READ MORE... →Salient to Investors: The S&P 500 remains up more than 9% since January 1, 2012, and up 12% in the last 12 months. Corporate profits and revenue are in a fundamental contraction so it’s natural for the market to be held back. Any sitting president has very little influence on the
READ MORE... →Salient to Investors: Jim O’Neill writes: Nothing has materially changed by the US election and the Chinese leadership handover. The positive surprise in Korean exports in October indicates a pick up in world trade. Japan reported its first seasonally-adjusted current account deficit following other generally grim economic news. It is
READ MORE... →Salient to Investors: Ed Parker at Fitch Ratings said the US will be tipped back into recession if policy makers fail to avoid the fiscal cliff, affecting growth of country. Fitch may downgrade the US in 2013 unless lawmakers avoid automatic tax boosts and budget cuts and raise the debt ceiling. Read the
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