Salient to Investors: David Stockman writes: The central banks have shot their wad after increasing their aggregate balance sheet from $3 trillion to $22 trillion over the last 15 years, which falsified financial prices. The coming deflation will bring a plunge in corporate profits and collapsing prices of vastly inflated risk asset classes. The
READ MORE... →Salient to Investors: China’s day of reckoning is delayed again as it is reverts to credit stimulus after attempts to engineer a stock market boom have failed. Economic growth will accelerate over the next few months, giving global commodity markets a brief reprieve. Robin Brooks at Goldman Sachs estimates that capital
READ MORE... →Salient to Investors: David Stockman writes: Total non-farm labor hours are no higher than in Q4, 2007 and only 1% higher than in the spring of 2000, meaning we have added virtually no new employment to the US economy over 2 business cycles. Over the 29 quarters after the 1990 business
READ MORE... →Salient to Investors: Linda Yueh at Oxford University said: The Chinese stock market is not very important to ordinary Chinese because at most only 50 million households invest in it, and they average less than 10 to 15% of their assets. Retail investors follow the herd so volatility is endemic in
READ MORE... →Salient to Investors: Michael Snyder writes: Global debt is at record highs, too big to fail banks have never been more reckless, and global financial markets have never been more primed for a collapse. Most people lack the patience to wait for long-term trends to play out so if the stock market is
READ MORE... →Salient to Investors: Michael Pento at Pento Portfolio Strategies writes: In not allowing participants to sell stocks, China has fallen off the free market wagon. The same China that believes that economies grow by building empty cities. China’s actions are the antithesis of capitalism and free markets so it shocking to
READ MORE... →Salient to Investors: China’s “new normal” of slower but better growth is a battle for survival for many businesses. The HSBC/Markit PMI shows that factories have cut jobs for 20 consecutive months, May seeing the biggest cuts since the global financial crisis. Read the full article at http://www.wsj.com/articles/for-many-firms-chinas-new-normal-spells-doom-1437355230 Click here to receive free and
READ MORE... →Salient to Investors: Fareed Zakaria said: History shows that the more countries integrate within the global community, the less incentives they have to be spoilers. Iran and the US share common interests on the threat from ISIS, the stability of Iraq and Afghanistan. The most successful and dominating countries in
READ MORE... →Salient to Investors: The annual CPI reported figure of 0.1% is a lie and has become a manipulated statistic using academic theories to systematically under-report the true level of inflation – between 4% and 10% – in order to cut annual cost of living adjustments to Social Security and other
READ MORE... →Salient to Investors: Share buybacks are now the preferred way to boost stock prices in the face of softening earnings. Quarterly spending on dividends has risen 80% and capital-expenditure budgets have risen 44% since early 2009, whereas spending on buybacks has risen nearly 5 times . In Q1 2015, SPX companies returned
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