Salient to Investors: Helene Rey at London Business School says the US enjoys an exorbitant privilege from the returns on its assets held in the rest of the world. Pierre-Olivier Gourinchas at Berkeley said before 2007, the predicted crisis was that the US would not be able to borrow anymore and the dollar would collapse. Gourinchas
READ MORE... →Salient to Investors: Mark Kiesel at Pimco said: US industries tied to housing will grow 4 times as fast as the economy, making them top picks for investors. Housing starts will increase 15 percent a year until at least 2015 Home prices will rise over 5 percent annually as demand recovers from the worst
READ MORE... →Salient to Investors: Marc Faber of the Gloom, Boom and Doom Report said: Printing money creates bubbles because it doesn’t flow evenly into the economic system but stays in the financial services industry and among people who have access to these funds like the wealthy. The printing press helped inflate
READ MORE... →Salient to Investors: Axel Weber at UBS said the growth story in Europe is just not there yet, the structural problems are unresolved, and there is some potential for equities to improve particularly for the US. Read the full article at http://www.bloomberg.com/news/2013-03-27/european-stock-index-futures-climb-after-u-s-rally.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Real estate equity jumped 25 percent in 2012, the biggest increase in 65 years. Home values rose to the highest levels since 2007. Shaun Richardson at Icon Advisory said mortgages originations should rise 10 percent in 2013. The Fed said 6 percent of lenders eased equity-mortgage standards at the end
READ MORE... →Salient to Investors: Paul Zemsky at ING Investment Mgmt said housing is a huge part of the economic recovery and if housing prices rise, people generally are more confident. Brad Sorensen at Charles Schwab said consumers may say they’re less confident, but so far retail sales have held up pretty well. Read the
READ MORE... →Salient to Investors: Martyn Davies at Frontier Advisory said there’s a shift in power from the traditional to the emerging world, with much geo-political concern about this in the western world. Foreign direct investment into BRICS nations accounted for 20 percent of global FDI flows versus only 6 percent in
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co. says 5 of the 7 varieties of deflation are present in the US economy. Commodity price deflation will continue as oversupply continues to swamp demand amid weak global growth and a hard landing in China, which remains export-driven. The slow global
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co writes: There is an important distinction between good deflation caused by excess supply – as after the Civil War and in the 1920s – and bad deflation created by deficient demand – as in the 1930s and Japan over the last
READ MORE... →Salient to Investors: Paul Farrell writes: We are at a market top and an economic turning point. Bernanke’s non-stop cheap-and-easy-money printing presses are loved by Wall Street banks but are bad for the rest of America. His reappointment – certain to become Obama’s greatest domestic blunder – so shocked Nassim Taleb
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