Salient to Investors: Harry Dent and Rodney Johnson write: We are entering the last stage of the 80-year New Economy Cycle Commodities topped in 1920, 1951 and 1980. The spending cycle is 39 years and the commodities cycle is 30 years. Gold will fall to $750 The US economy will
READ MORE... →Salient to Investors: Nicholas Spiro at Spiro Sovereign Strategy writes: Market sentiment toward the euro area has swung from panic to growing confidence in just six months. Spain and Italy, the twin bellwethers of sentiment on Europe, show how markets are again underpricing sovereign risk as even a cursory glance at
READ MORE... →Salient to Investors: The IMF said: The world economy will grow 3.5 percent in 2013 and 4.1 percent in 2014, versus 3.2 percent in 2012. The euro region will shrink 0.2 percent in 2013, led by Spain and slowing growth in Germany, and grow 1 percent in 2014. The euro region poses a
READ MORE... →Salient to Investors: Bloomberg survey of global investors: 38 percent, the highest, expect the US to be in the top two markets over the next year, followed by China. 53% say equities offer the highest return in the next year, the most since the poll began in July 2009. Nearly
READ MORE... →Salient to Investors: Barry Norris at Argonaut Capital Partners said: Buy European stocks with the highest potential for earnings growth over those with the cheapest valuations. The big liquidity rush that has made everyone enthusiastic won’t last the year – equities will rally because they are the least-worst option among asset classes. ECB
READ MORE... →Salient to Investors: Mark Dowding at BlueBay Asset Mgmt said investors should sell government bonds from the euro-region’s periphery, including Spain and Italy, because of a complacency on the part of policy makers, complacency in Spain, and no progress in sight. Dowding sees rising political risk in Italy. Read thef ull article at
READ MORE... →Salient to Investors: The ZEW Center for European Economic Research index of investor and analyst expectations rose to minus 11.5 from minus 18.2 in September. Neil Jones at Mizuho Corporate Bank said the better the chances of a bailout for Spain, the more risk-on that is – the market is not prepared for the upside or
READ MORE... →Salient to Investors: Nigel Gault and Paul Edelstein at IHS Global Insight expects payroll growth won’t be enough to reduce the unemployment rate. Doug Roberts at Channel Capital Research said most of the rally is being driven by QE. Wasif Latif at USAA Investments said Spain will need to accept the offer from the ECB. bad
READ MORE... →Salient to Investors: The Stoxx 600 is at 12.3 times estimated earnings, its highest multiple since December 2010. Peter Garnry at Saxo Bank A/S said the divergence in the purchasing managers’ index figures between France and Germany shows that Europe is diverging into an A and a B team, with France joining the B team
READ MORE... →Salient to Investors: Paul Krugman at Princeton: US economy is terrible with 4 million out of work for over a year, causing devastation to families and damaging to the economy’s long-term future because its harder for them ever to re-enter the workforce. The whole private sector is paying down debt, and if everyone tries to do
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