Salient to Investors: Paul Farrell writes: The fashion industry is betting megabucks on the future of America’s economy and stock market. At the peak of the 1990s mania tech magazines were also bloated with hundreds of pages of ads. Ad pages signal economic health. Barnes & Noble’s racks are filled with
READ MORE... →Salient to Investors: Paul Joseph Garcia at BPI Asset Mgmt said any good news from Europe and China will be a buy signal for investors, and is overall net buying. IMF cut its global growth forecast this year to 3.3 percent, the slowest since the 2009 recession, sees alarmingly high risks of a steeper slowdown,
READ MORE... →Salient to Investors: IMF says: Risks of a slowdown are alarmingly high primarily because of policy uncertainty in the US and Europe. Global growth will be 3.3 percent in 2012 and 3.6 percent in 2013, with a 15 percent chance of recession in the US in 2013, 25 percent in Japan, and
READ MORE... →Salient to Investors: Bruce Kasman at JPMorgan Chase said we are not seeing a further loss of momentum, a very important positive, and the said economy is expanding at a 2 percent rate. Kasman said the employment report suggests that weakness in capital spending is not broadening out to hiring. Confidence is growing at
READ MORE... →Salient to Investors: Markus Huber at ETX Capital said whenever China shares fall, German carmaker shares fall because China is one of the most important markets. The World Bank said growth in developing East Asia, which excludes Japan and India, will fall to 7.2 percent, the slowest pace since 2001, from 8.3 percent in
READ MORE... →Salient to Investors: Bruce McCain at KeyCorp said we’re back to a period where investors become less enthusiastic as they realize the problems of the world have not gone away. Bloomberg poll estimates S&P 500 earnings will fall 1.7 percent in Q3, the first decline since 2009. Gina Martin Adams at Wells Fargo said earnings are weakening fairly quickly –
READ MORE... →Salient to Investors: The percentage of working-age adults who are employed is near a 30-year low at 63.6%, no better than when the Fed first began QE several years ago. The unemployment rate would be 9.8% if it included working-aged people who have stopped participating, and 14.7% if it included the underemployed.
READ MORE... →Salient to Investors: Jim O’Neill at Goldman Sachs Asset Mgmt said when we come out the other side with a different structure, we should have a much stronger world economy. John Bilton at Bank of America Merrill Lynch sees a changing complexion in global growth, ending with a more balanced world economy longer-term. Bilton said this will
READ MORE... →Salient to Investors: Lawrence Mishel at the Economic Policy Institute says: The jobs report shows nice momentum, though increase in payrolls is not fast enough to get a rapid decline in unemployment. The jobs data is not manipulated – the data is based on surveys of tens of thousands of employers and households every month.
READ MORE... →Salient to Investors: The jobs number is tremendously volatile and no one takes it at face value – especially so when the economy is making a turn or regular seasonal patterns start to change. Historically, employment numbers for workers between 20 and 24 years old drop sharply in September – by an
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