Salient to Investors: Concern is mounting that the government isn’t doing enough to bolster economic growth at a time when producers are expanding supply. Bloomberg survey median expects the S&P GSCI index to rise 3.1 percent by year-end. Barclays says the impact of QE will be smaller this time, says commodity assets under management
READ MORE... →Salient to Investors: FRB Dallas President Richard Fisher said: QE3 won’t work due to Congress inaction and excessive government regulation, which are holding back hiring and investment Residential real estate is a recent bright spot QE3 risks higher inflation – if you allow higher prices, how credible are you in clawing them back? Read the full article
READ MORE... →Salient to Investors: Texas bonds this year have outperformed other top-rated states. John Bonnell at USAA Investments said the nation’s second-biggest economy shields Texas from cutbacks and lures bond investors, with demand for almost everything in Texas. Robert Dye at Comerica said: The population of Texas, the second-most-populous state, is younger than the U.S. average
READ MORE... →Salient to Investors: Jim Chanos at Kynikos Associates says: He expects declines in companies that may be inexpensive compared with earnings, like in natural gas, which have enormous cash needs, and iron-ore producers, where industry capacity will expand globally even as demand stalls because of China’s slowdown A number of high-profile natural gas companies may be in financial
READ MORE... →Salient to Investors: Bloomberg reports 51 of 70 indicators have improved since January 2009 when Obama took office. A three month moving average of the Chicago Federal Reserve Bank’s National Activity Index shows the economy growing below its historical trend for five consecutive months and nine of the past 12. Bloomberg survey
READ MORE... →Salient to Investors: Joachim Fels at Morgan Stanley said: It won’t take much to tip the world into a global recession Central banks in Europe, China, U.K. and Japan will further ease, thereby supporting asset prices, preventing deflation, helping avert sovereign defaults and maintaining economic growth. Central banks on their own cannot bring a sustainable
READ MORE... →Salient to Investors: Juergen Michels at Citigroup says a huge amount of unanswered questions remain in Europe and the journey back to growth and reduced debt is very long. Jacques Cailloux at Nomura International said politicians act for their own good and their countries’ good rather than the greater good of Europe – if this continues the
READ MORE... →Salient to Investors: Bellwethers FedEx and Intel expect lower quarterly profits because of weakness in worldwide demand. Wall Street expects quarterly profits at large American companies to decline for the first time since 2009. Ethan Harris at Bank of America Merrill Lynch said a lot of the profit gain over the past years came from a
READ MORE... →Salient to Investors: The yield gap between the 10-yr and 30-yr Treasuries is at the highest in a year. Brian Edmonds at Cantor Fitzgerald said Treasuries are worried about inflation on the heels of open-ended stimulus. Sean Murphy at Societe Generale said the Fed leaving its purchases open-ended and extending its guidance means a steeper yield curve. QE3 is
READ MORE... →Salient to Investors: Contrarian fund manager Bill Smead is: Bullish on the U.S. but bearish on companies exposed to China. Looks for strong balance sheets, industries with high barriers to entry, long histories of profits and dividends, p/e ratios below their 10-year average, strong insider ownership, and shareholder friendliness with regard to
READ MORE... →