Salient to Investors: The US home ownership rate is 65% versus the record high of 69.2 percent in 2004, and back where it was two decades ago. Anthony Sanders at George Mason University said low down-payment loans coupled with exotic adjustable rate mortgages helped fuel the housing bubble, so do we want to
READ MORE... →Salient to Investors: The Fed, ECB, and BoJ responded to economic shocks by casting off institutional dogma and broadening their missions. Adam Posen at the Peterson Institute for Intl Economics said unconventional policy will have to become conventional, as central banks act on a wide range of assets and directly in credit markets. Michael Gapen
READ MORE... →Salient to Investors: Fareed Zakaria said: For 340 consecutive months, the Earth has been warmer than historic averages. 28 years ago, the Arctic was covered by ice throughout the year as it had been for centuries, but every summer two-thirds of it melts to water. In 2012, 46 commercial ships were allowed
READ MORE... →Salient to Investors: Matt Busigin writes: Corporate profits are going to be weak over the next decade, but it won’t matter very much to assets, and even be beneficial to labor. Consensus analyst estimates call for S&P 500 EPS in 2014 of over $123, 20% above the present value. Corporate
READ MORE... →Salient to Investors: Sudakshina Unnikrishnan and Jian Chang at Barclays say should China’s growth dip to 3 percent in the next 3 years, copper would fall more than 60 percent, zinc by up to 50 percent, and oil to $70 a barrel. They cite risks of slowing industrial production and of financial stress due to debt of
READ MORE... →Salient to Investors: Vincent Reinhart at Morgan Stanley said investors are the little white lab rabbits in the central bank experiments. Gilles Moec at Deutsche Bank said the potential for the dialog between the central banks and the market to fail is significant. Nathan Sheets et al at Citigroup said the UK
READ MORE... →Salient to Investors: Anastasia Amoroso at JPMorgan Funds said any reduction in QE could be a slight drag in the short-term as the market is adjusting to rising rates and realizing rising rates do not mean the death of equities. Economists expect Fed tapering in September and US growth to have
READ MORE... →Salient to Investors: Brian Jones at Societe Generale said hiring;s remarkable stability will continue and economic growth will accelerate in half2 – everybody expects Fed tapering in September. UniCredit and Deutsche Bank Securities say payroll gains averaging 202,000 a month in half1 typically link with GDP growth close to 3 percent,
READ MORE... →Salient to Investors: UniCredit Group and Deutsche Bank Securities say payrolls gains are typically linked with GDP growing close to 3 percent. Harm Bandholz at UniCredit said the employment numbers are closer to the true picture and ,” expects GDP growth to pick up in half2 and even more in 2014. Joseph
READ MORE... →Salient to Investors: The IMF said the Fed exit from QE could cause excessive interest-rate volatility which would have adverse global implications. The IMF maintained its US growth forecast for 2013 at 1.7 percent, saying housing and labor markets are improving, and its 2014 growth forecast of 2.7 percent, but said that fiscal deficit
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