Salient to Investors: Shen Jianguang at Mizuho Securities Asia said it is too early to say an economic rebound has begun in China as there is still a strong bias towards larger enterprises and coastal areas in terms of fiscal and credit policy implementation, while small and mid-sized companies appear to
READ MORE... →Salient to Investors: Yields on US Treasuries, German bunds and Japanese government bonds are 1 standard deviation above their historical norm. Yields on Treasuries and bunds are more than 40 basis points below what would be 2 standard deviations from their means, and Japanese bonds are 5 basis points away.
READ MORE... →Salient to Investors: ISM fell to the lowest reading 49 since June 2009 and versus the median forecast of 51. Guy LeBas at Janney Montgomery Scott said manufacturing is stymied by slow corporate spending and government spending and will grow at a modest pace this year and unlikely to accelerate in coming
READ MORE... →Salient to Investors: OECD predicts faster global economic growth, led by the US and Japan: growth in member countries will accelerate to 2.3 percent in 2014 from 1.2 percent in 2013, China, will grow 8.4 percent in 2014 after growth of 7.8 percent in 2013. Neil Mackinnon at VTB Capital
READ MORE... →Fareed Zakaria said: The great American housing market is back as the Case-Shiller housing index showed its largest annual increase in prices in seven years, showing its core character: flexibility and resilience. The US is the only rich country whose population is growing, increasing by 3 million people every year,
READ MORE... →Salient to Investors: Marc Faber at the Gloom Boom & Doom Report says: High-end assets from stocks to art to real estate are in a bubble caused by central bank money-printing. This money doesn’t increase economic activity and asset prices in concert, instead creates dangerous excesses in countries and asset
READ MORE... →Salient to Investors: Stephen L. Carter at Yale writes: The law of unintended consequences rests on a deceptively simple insight: We cannot predict the future. There are always externalities, and it’s impossible to identify all of them in advance. Eli Whitney patented the cotton gin in 1794 which led to
READ MORE... →Salient to Investors: The boost to household wealth from rising home values and stock prices is allowing Americans to weather higher payroll taxes and sustain purchases, the biggest part of the economy. Millan Mulraine at TD Securities USA said the economic outlook is still favorable with fairly robust growth driven
READ MORE... →Salient to Investors: Boston Consulting Group said: Asia-Pacific centers such as Singapore and Hong Kong are expected to receive most of the newly created wealth in the region that finds its way offshore. Hong Kong has the greatest concentration of billionaires followed by Switzerland. Asian wealth outside Japan will surpass North America
READ MORE... →Salient to Investors: David Stockman said: The baby boom generation has unfairly benefited from bubble-finance, a 30-year explosion of debt which created temporary but unsustainable economic prosperity, and a financialization of the system through lower and lower interest rates that has massively rewarded speculation but not real investments. $60 trillion
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