Salient to Investors: Global investors are buying emerging-market debt and shares of well capitalized companies. Anne Richards at Aberdeen Asset Management likes balance sheet strength, says many European equities are high risk and U.S. Treasuries are overvalued. Richards says investors are underestimating the health of Asian issuers – Likes Indonesian sovereign debt, Latin American
READ MORE... →Salient to Investors: Government measures to stimulate the world’s second-biggest economy have yet to reverse a slowdown that may deepen for a sixth quarter. China’s economy expanded 8.1 percent in Q1, the least in almost three years and the fifth quarterly deceleration. Predictions: Dariusz Kowalczyk at Credit Agricole CIB said industrial profits
READ MORE... →Salient to Investors: Douglas Brinkley at Rice University said Obama avoided disaster. David Redlawsk at Rutgers said voters are still going to vote their pocketbooks. Harvard professor Robert Blendon said voters admire people who get things done, but the ruling won’t shift a lot of health policy voters. Read the full article at http://www.bloomberg.com/news/2012-06-28/obama-s-supreme-court-win-may-help-now-more-than-november.html
READ MORE... →Salient to Investors: PIMCO’s Bill Gross said the debt trap remains even after the European agreement, continues to avoid Spanish and Portuguese debt in favor of U.S. Treasuries and mortgage securities, Gross. Matt McCormick at Bahl & Gaynor said Europe and the economy raises more questions than answers for investors – after Facebook, they want problem-free IPOs. Read
READ MORE... →Salient to Investors: Kenneth Heebner said the U.S. is poised to outperform most countries – lower growth in Asia and Europe will lower oil and commodity prices, a de facto tax cut for U.S. consumers. Heebner sees forces driving the U.S. in a positive direction – the real estate bust has created pent-up demand for housing
READ MORE... →Salient to Investors: China’s Shanghai Composite Index erased its 2012 gain on concern a manufacturing slump and Europe will deepen the economic slowdown. Wu Kan at Dazhong Insurance Co said the Chinese economy is still slowing and earnings growth forecasts have further room to fall, and investors have no idea how slow earnings
READ MORE... →Predictions: Bill Gross said: It will take economies and financial markets decades to normalize after the debt crisis, keeping U.S. securities the safest bet for investors. This is an authentic debt crisis and can only be ultimately cured by default or printing more money to inflate it away. A debt crisis can’t be cured with more debt
READ MORE... →Salient to Investors: Heat wave that set or tied 196 daily temperature records yesterday moves east, promising to raise energy demand. MDA EarthSat Weather expects July to be one of the five warmest since 1950 in the large cities that use the most energy. Read the full article at http://www.bloomberg.com/news/2012-06-28/u-s-weather-promises-energy-boost-as-temperatures-rise.html
READ MORE... →Salient to Investors: Kurt Brunner at Swarthmore Group said Europe is not going away for the next three years. U.S. executives are tapping into their record pile of cash for the first time in four years as they drive spending on plants and equipment to an all-time high. David Sowerby at Loomis Sayles
READ MORE... →Salient to Investors: A record 7.3 million workers 65 or older are competing for jobs. Joblessness among 16 to 24-year-olds was 16.1 percent in May, versus 8.2 percent rate for the nation. Payrolls in May grew at the slowest pace in a year and joblessness has topped 8 percent for 40 consecutive
READ MORE... →