U.S. Expansion Poised for Longevity – Bloomberg 06-09-13

Salient to Investors: The economic expansion shows signs of lasting almost twice as long as average, with few of the excesses that often presage the start of contractions – inflation is slowing, not quickening, household debt is shrinking, not expanding, and the labor market is slack, not tight. Robert Gordon

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La Dolce Vita Eludes Italian Students Found Unemployable – Bloomberg 06-09-13

Salient to Investors: The Italian higher-education system lets undergraduates linger on campus for years and retake final exams 6 times, and schools are disconnected from the economy and only recently opened campus career offices. No Italian schools, public or private, are in the top 200 in the Times Higher Education’s

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Gross Says Jobs Report Suggests Fed Won’t Taper Bond Buying – Bloomberg 06-07-13

Salient to Investors: Bill Gross at Pimco said: The Fed will not taper with unemployment rising to 7.6 percent and very dire metrics for the average work week and wages, but a more normal economy requires the Fed to raise interest rates to more normal levels because QE and low interest rates are distorting capital

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Former Reagan Budget Director Argues Against Bailouts, for Financial Discipline – PBS Newshour 06-04-13

Salient to Investors: David Stockman says: We are in serial bubbles. Greenspan and Bernanke have inflated bubbles for years by keeping interest rates low. A system of bubble finance is geared towards massive borrowing and speculation on leverage, everyone will do it  – a gambler’s dream. Financial markets are full

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Bonds’ Point of No Return About a Standard Deviation Away – Bloomberg 06-03-13

Salient to Investors: Yields on US Treasuries, German bunds and Japanese government bonds are 1 standard deviation above their historical norm. Yields on Treasuries and bunds are more than 40 basis points below what would be 2 standard deviations from their means, and Japanese bonds are 5 basis points away.

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Bonds Drop Globally as Stocks Reach Highs on Growth Optimism – Bloomberg 06-02-13

Salient to Investors: OECD predicts faster global economic growth, led by the US and Japan: growth in member countries will accelerate to 2.3 percent in 2014 from 1.2 percent in 2013, China, will grow 8.4 percent in 2014 after growth of 7.8 percent in 2013. Neil Mackinnon at VTB Capital

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