Salient to Investors: All indicators that have a number attached to them are seemingly pointing to a better economy. Unemployment is dropping. GDP is growing, housing is recovering, the Dow has more than doubled in just over 4 years. There is still too much stimulation required. Record low interest rates
READ MORE... →Salient to Investors: Colin Mayer at Harvard writes: British capitalism is the textbook description of how to organize capital markets and corporate sectors. Yet the performance of the British economy has been mediocre, with much of the population dissatisfied with economic and social conditions, large-scale manufacturing that has been decimated, decades of underinvestment
READ MORE... →Salient to Investors: For the first time since 2009, US bond yields are rising at the same time inflation is slowing, and Treasuries are offering the highest real yields in more than 2 years. Andrew Wickham at Insight Investment Mgmt said inflation is not a big threat while it is
READ MORE... →Salient to Investors: Doug Short at Advisor Perspectives writes: The two 20th century recessions and major market sell-offs devastated the retirement readiness of a many people nearing retirement age. The Labor Force Participation Rate (LFPR) for age 25-64 cohorts peaked for men in May 1954 at 95.9%, for women in
READ MORE... →Salient to Investors: Bill Gross at Pimco raised Treasuries holdings to 39 percent in April, the highest level since July 2010, and warned that investors face potential losses from global central banks’ unprecedented monetary stimulus. Gross said Treasuries are a better alternative than cash, and negative real interest rates, inflation, currency
READ MORE... →Salient to Investors: The 4-week average of applications for unemployment insurance over the past month fell to the lowest level since November 2007, showing employers have enough confidence to hold onto workers. Consumer sentiment last week held around the highest level in 5 years. Guy Berger at RBS Securities said there is only
READ MORE... →Salient to Investors: Wang Weijun at Zheshang Securities said the producer-price index is indicating the economic recovery is weaker than expected as demand for industrial products looks sluggish – the market needs to digest profit taking after the recent rebound. The Shanghai Composite is at 9.6 times estimated earnings for 2013
READ MORE... →Salient to Investors: Regional lenders were the primary source of loans for landlords buying properties before the real estate collapse crash. Since then, at least 475 banks have failed and larger banks have tightened mortgage underwriting standards and are focusing on the biggest investors. Home prices are 29 percent below the 2006 peak. Millions of
READ MORE... →Salient to Investors: Nouriel Roubini writes: For the next year or so, as long as the economy grows 1.5-2%, and you have easy money, the market can go higher. Growth is slow, earnings growth is slowing down. both top and bottom lines are not as good as they were, but
READ MORE... →Salient to Investors: Stephen Burd at the New America Foundation found almost two-thirds of private colleges for the 2010-2011 school year required students from families making $30,000 or less annually to pay more than $15,000 a year. 11 percent of students at Harvard and 14 percent at Yale received Pell
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