Bull Market Shows No Sign of Death With Yellen Support – Bloomberg 12-01-13

Salient to Investors: Resistance to hiring will help push S&P 500 Index profit margins above 10 percent next year, the highest ever. The 5-year rally has restored $14 trillion to share prices, yet US payrolls remain 1.5 million below the level in 2008. Michael Holland at Holland & Co said

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Stocks Triumph 3rd Month in Best Run Since ’09 as Gold Sinks – Bloomberg 12-01-13

Salient to Investors: Bill O’Neill at UBS Wealth Mgmt said the story is still the combination of easy money policies and expectations of growth into 2014 and that growth is on the horizon. The Investment Companies Institute reports individual investors gave $30 billion to managers in 2013, the first net

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America’s Role as Consumer of Last Resort Goes Missing – Bloomberg 12-01-13

Salient to Investors: The smallest US current-account deficit since 1999 shows the US is a lesser supporter of global growth than in the past. Exploration and production are adding to growth, reducing spending on imported energy, cheaper fuel and raw materials are boosting manufacturing, making the US more of a

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Former Reagan Budget Head David Stockman: Fed Has Created Gargantuan Global Bubble – MoneyNews 11-27-13

Salient to Investors: David Stockman said: QE is brewing asset bubbles around the world, exporting its lunatic policy worldwide Central banks all over the world have been massively expanding their balance sheets, and as a result of that there are bubbles in everything in the world, asset values are exaggerated

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In One Powerful Paragraph, Richard Koo Explains How The Fed Is Causing Bubbles – Business Insider 11-27-13

Salient to Investors: Richard Koo at Nomura said: Mini-bubbles can occur during a balance sheet recession, like this one. Not yet seeing a big bubble, but concerned about mini bubbles. In a monetary policy-driven market, money created by an accommodative central bank typically spreads throughout the economy and lifts markets. During

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Slump-Watchers Dump Yield Curve for 1970s Tool: Cutting Research – Bloomberg 11-26-13

Salient to Investors: Ellen Zentner at Morgan Stanley said: The Fed’s near-zero interest rate and QE is holding down US bond rates, meaning the US Treasury yield curve would struggle to invert, crimping its effectiveness as an indicator of business cycles. Yield curve inversion signals investors are betting on weaker

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Goldman Sees S&P 500 Falling 10% Next Year Before Rally to 1,900 – Bloomberg 11-26-13

Salient to Investors: David Kostin at Goldman Sachs said: The S&P 500 will fall 10 percent in the next 12 months before rebounding to end 2014 at 1,900, end 2015 at 2,100 and end 2016 at 2,200. The overall market should rise because the US economy will be getting better.

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