Salient to Investors: Moody’s Investors Service the total funded ratio – assets relative to liabilities – of state pensions fell to 48 percent under its new methodology from 74 percent before the changes. The ratio measures fund management and whether a state is keeping up with promises to retirees. Moody’s said
READ MORE... →Salient to Investors: Jim Rogers says: Natural gas fundamentals are not nearly as good as the hype. The number of rigs on the ground is down 75% over the last two years as the wells are very short-lived, and it takes an enormous amount of money to keep them up.
READ MORE... →Salient to Investors: Jeffrey Lacker at FRB of Richmond said: The Fed is not close to tapering QE and expects 2 more years of sluggish growth, and 2.25 percent growth in 2014. The Fed will not alter their guidance about tapering based on GDP, focusing instead on jobs. Markets are better aligned now
READ MORE... →Salient to Investors: Daniel Silver at JPMorgan Chase said it is not big pullback in consumer spending, just weaker than previously estimated, and the housing recovery will continue and overall growth will strengthen in half2. Joshua Shapiro at Maria Fiorini Ramirez said all in all, things are improving, but a lot of negatives
READ MORE... →Salient to Investors: Corporate creditworthiness in the US is deteriorating at the fastest pace since 2009 with earnings growth slowing as yields rise from record lows. Moody’s said the ratio of upgrades to downgrades fell to 0.89 times in the first 5 months of the year after reaching a post-crisis
READ MORE... →Salient to Investors: William Pesek writes: No country is more vulnerable to the dreaded slowdown in China than resource-rich Australia, as the mining boom that fueled nearly all of Australia’s recent growth is nearing a cliff of economic risk. Exporting natural resources led to the neglect and atrophying of other critical
READ MORE... →Salient to Investors: Justin Wolfers at University of Michigan writes: Jan Hatzius at Goldman Sachs estimates that it takes $1 trillion in bond purchases to move long-term interest rates by 0.4 percent. So the market’s recent overreaction to Benanke’s tapering comments is equivalent to cutting back on QE by $1 trillion versus $255
READ MORE... →Salient to Investors: John Kilduff at Again Capital said the terrible GDP number gives the Fed room to continue QE and there won’t be a tapering anytime soon. balance these Read the full article at http://www.bloomberg.com/news/2013-06-26/wti-crude-rises-on-speculation-fed-to-keep-stimulus.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Bond yields and risk spreads were too low 2 months ago and global markets that were too leveraged are now reducing risk The Fed tilted over-risked investors to one side of an overloaded and over-levered boat when discussing tapering, so don’t panic.
READ MORE... →Salient to Investors: Jim Rogers writes: China has a major water problem and the only way the China story runs into big problems is if they run out of water. They will solve it so buy companies that are working to fix that problem. The Chinese stock market is getting
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