Salient to Investors: Zhu Min at the IMF said the financial market structure did not change very much and we are not safer. Sanford Weill, John Reed, David Komansky and Philip Purcell have said that financial conglomerates could be more valuable and safer if split apart. Amar Bhide at Tufts University says no one can
READ MORE... →Salient to Investors: The Bovespa stock index is down 6.6 percent in 2013, the worst performer in 94 indexes after Jamaica. The median analysts expects Brazil, the world’s second-largest emerging economy after China, to grow 3.5 percent in 2013 versus 1 percent in 2012. Read the full article at http://www.bloomberg.com/news/2013-02-27/mantega-says-currency-war-he-named-eases-for-recovering-brazil.html Free
READ MORE... →Salient to Investors: Alice Schroeder writes: By many accounts, Warren Buffett has pulled off another brilliant feat in spotting an opportunity in food stocks, yet he never made a significant investment when Heinz lagged the S&P 500 from December 2008 to January 2013, and since January 1997. Heinz’s stock was fairly priced before the
READ MORE... →Salient to Investors: Brad Sorensen at Charles Schwab said the economic numbers are holding up really well, and housing rebounding will continue, feeding into consumer confidence. 74 percent of S&P 500 companies so far reporting quarterly results have beat estimates. The index is at 14.8 times reported earnings versus the average
READ MORE... →Salient to Investors: Kenneth Heebner at the CGM Focus Fund has bet 21 percent of his find on a decline in U.S. Treasuries as the growing US economy eventually prompts the Fed to boost interest rates. At the end of 2012, the fund was 29 percent invested in banks, 24 percent in homebuilders. Heebner said
READ MORE... →Salient to Investors: Jeremy Grantham at Grantham Mayo Van Otterloo said: All global asset prices are too high because of Federal expansive monetary policy. US companies, other than quality stocks with stable earnings and low debt, and most global growth equities, are brutally overpriced. US large-caps, excluding quality stocks, will lose
READ MORE... →Salient to Investors: HSBC’s Flash PMI shows China’s manufacturing is expanding at the slowest pace in 4 months. Zhang Zhiwei at Nomura said the report casts some shadow over China’s recovery. Qu Hongbin at HSBC said the recovery’s underlying strength is still intact, as indicated by expanding employment and pickup of credit growth. The median
READ MORE... →Salient to Investors: Bank of America Merrill Lynch indexes show the gap in yields between linkers and governments reached a 21-month high of 1.70 percent. Economists forecast consumer-price gains of 2.72 percent in 2013, in line with the 10-year average. Index-linked securities are favored because sovereign-debt returns are being erased
READ MORE... →Salient to Investors: Jim Rogers says: The US economy is poised for a major crash. Do not trust any of the positive news coming from any world government. Everybody is printing money but it is artificial, has never been good for anybody and cannot continue. We are in a fool’s paradise
READ MORE... →Salient to Investors: Correlation between the Euro Stoxx 50 Index and the MSCI All-Country World Index has fallen to the lowest level since 2008. The Euro Stoxx 50 trades at 10.9 times estimated earnings versus 13.7 for the S&P 500 and 14.8 for the MSCI Asia Pacific Index. Trevor Greetham at Fidelity Worldwide is underweight
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