Salient to Investors: The Fed, ECB, and BoJ responded to economic shocks by casting off institutional dogma and broadening their missions. Adam Posen at the Peterson Institute for Intl Economics said unconventional policy will have to become conventional, as central banks act on a wide range of assets and directly in credit markets. Michael Gapen
READ MORE... →Salient to Investors: William Pesek writes: Concerns that China is heading into a turbulent period are soundly based. No one knows if China is cascading into a crisis, not even Premier Li Keqiang. In July, the Broad Group broke ground on the world’s tallest building, expecting to build it in 90
READ MORE... →Salient to Investors: Fareed Zakaria said: For 340 consecutive months, the Earth has been warmer than historic averages. 28 years ago, the Arctic was covered by ice throughout the year as it had been for centuries, but every summer two-thirds of it melts to water. In 2012, 46 commercial ships were allowed
READ MORE... →Salient to Investors: Matt Busigin writes: Corporate profits are going to be weak over the next decade, but it won’t matter very much to assets, and even be beneficial to labor. Consensus analyst estimates call for S&P 500 EPS in 2014 of over $123, 20% above the present value. Corporate
READ MORE... →Salient to Investors: Sudakshina Unnikrishnan and Jian Chang at Barclays say should China’s growth dip to 3 percent in the next 3 years, copper would fall more than 60 percent, zinc by up to 50 percent, and oil to $70 a barrel. They cite risks of slowing industrial production and of financial stress due to debt of
READ MORE... →Salient to Investors: Vincent Reinhart at Morgan Stanley said investors are the little white lab rabbits in the central bank experiments. Gilles Moec at Deutsche Bank said the potential for the dialog between the central banks and the market to fail is significant. Nathan Sheets et al at Citigroup said the UK
READ MORE... →Salient to Investors: Adam Bowe at Pimco said: Australian bonds are attractive after their worst run of losses since 1994 because the central bank will need to lower interest rates as mining investment drops. Pimco prefers to hold Aussie government bonds and high-quality spread assets like swap in the belief that interest
READ MORE... →Salient to Investors: Ding Shuang at Citigroup said local-government debt is a source of concern about China’s growth, and the new leadership is trying to give a clear answer as confidence in the Chinese economy from all sides has weakened. Ding said China has at least 12 trillion yuan of local-government debt. Zhu Haibin at
READ MORE... →Salient to Investors: Indian heart surgeon Devi Shetty has cut the price of artery-clearing coronary bypass surgery to $1,583, half of what it was 20 years ago, and versus $106,385 at the Cleveland Clinic in Ohio. Shetty said the current price of everything in health care is predominantly opportunistic pricing and the outcome of
READ MORE... →Salient to Investors: Anastasia Amoroso at JPMorgan Funds said any reduction in QE could be a slight drag in the short-term as the market is adjusting to rising rates and realizing rising rates do not mean the death of equities. Economists expect Fed tapering in September and US growth to have
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