Salient to Investors: Rising long-term rates indicate traders expect the economy to pick up. Bill Gross at Pimco is avoiding long-term bonds, and sees US inflation benign in 2013 and possibly rising in 2014 to 2016 on faster inflation. Hiroki Shimazu at SMBC Nikko Securities said the recovering global economy is pushing up
READ MORE... →Salient to Investors: William C. Dudley at FRB of New York said the international economy is gradually improving in a trend that benefits US growth. Dudley said Europe is considerably brighter as political support for fixing budgets is holding up, the ECB has provided a credible backstop, and it’s very clear countries want to
READ MORE... →Salient to Investors: Robert Lutts at Cabot Money Mgmt said the economy will be driven by capital being put to work: the glass is definitely more half full than empty. 73 percent of the 254 S&P 500 companies so far reporting have beaten estimates, and 65 percent have beaten sales estimates. Read the
READ MORE... →Salient to Investors: Christopher Sullivan at United Nations Federal Credit Union said we have settled at higher yields as the market is suspicious of low bond yields when risk assets are rallying – the market is focusing more on positive indicators of moderate strength than negative numbers. Thomas di Galoma at Navigate
READ MORE... →Salient to Investors: Paul Zemsky at ING Investment Mgmt sees much momentum for stocks even after such a good start to the year: earnings are strong, world economies are bottoming and valuations are attractive. EPFR Global report $39 billion moved into equity mutual funds in 2013, more than double the comparable period in
READ MORE... →Salient to Investors: Treasuries are trailing stocks by the most since October 2011. Hiromasa Nakamura at Mizuho Asset Mgmt said the current rise in yields is due to Fed easing, while investors expect money to go into riskier assets, and equity markets are rising. Bill Gross at Pimco said unprecedented central
READ MORE... →Salient to Investors: Markus Rosgen and Yue Hin Pong at Citigroup said stock funds attracted $18.8 billion last week versus $3 billion for bonds, with 58 percent of equity inflows going to North American funds. Pong said the outperformance of equities over bonds was mainly driven by US ETFs, while earnings
READ MORE... →Salient to Investors: Nigel Gault at IHS Global Insight said the drop in GDP in Q4 2012 was driven by temporary corrections in defense spending and inventories and is not a harbinger of recession – expects 2 percent growth in Q1 2013. Mark Zandi at Moody’s Analytics said the expansion will remain on course thanks
READ MORE... →Salient to Investors: Eric DeMarco at Kratos Defense & Security Solutions said politicians on notice that if they don’t fix the drop in defense cuts, the country is going back into recession. Benjamin Mandel at the Bureau of Economic Analysis said on an annualized basis, defense spending for the year fell 3.1 percent from 2011. Kevin Brancato
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co writes: Investor zeal for yield and disregard for risk favors the junkiest of the junk. When the grand disconnect between investor focus on the immense liquidity created by central banks and weak and weakening global economies becomes unsustainable, probably
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