Salient to Investors: History shows that presidents’ most ambitious ventures often create as many problems as they solve. Barbara Perry at the University of Virginia said presidents act first and think later about the long-term consequences. best packages Obama’s long-run budget forecasts call for exploding deficits beyond the customary 10-year planning period
READ MORE... →Salient to Investors: JPMorgan report that stocks have retraced the pattern from the last two big market rallies and now face a decline in 2013 of over 50%. Nouriel Roubini at NYU says there is a chance of an economic “perfect storm” in 2013 due to a worsening eurozone crisis,
READ MORE... →Salient to Investors: The era of increasingly cheap money is showing signs of ending in the mortgage bond market. Bill Gross at Pimco said bond investors should anticipate reduced returns as bets on mortgage securities are over in terms of the capital appreciation – expect total returns in 2013 of 3 to 4 percent. Brean
READ MORE... →Salient to Investors: Rob Haworth at US Bank Wealth Mgmt said 2012 saw much liquidating by hedge funds, but there’s an incentive to reverse that because of growth in emerging markets and especially China – it’s going to be a good year for commodities. The median economist expects China to accelerate for at
READ MORE... →Salient to Investors: Jay Schwister at Baird Advisors said Pimco underestimated how big the policy response would be and what type of positive impact it would have on financial markets, despite the new normal they forecast is playing out. Saumil Parikh at Pimco said policy distortions cannot continue indefinitely, so 2013
READ MORE... →Salient to Investors: Joseph Tanious at JPMorgan Funds said the jobs report shows the labor market is healing very slowly, so not so good that the Fed might pull out of QE. Deutsche Bank said supply chain movements suggest iPhone and iPad production may be declining. Mohamed El-Erian at Pimco said 7.8 percent unemployment shows
READ MORE... →Salient to Investors: Obama and Congress are heading for an even bigger confrontation over raising the nation’s debt limit, yet US Treasury bond investors aren’t alarmed. Matthew Duch at Calvert Investments says the market is much more concerned about growth than if the US will be able to pay its bills. Zach
READ MORE... →Salient to Investors: Jane Coffey at Royal London Asset Mgmt said we are not yet over fiscal cliff problems, but expects equities to produce good returns in 2013 and valuations aren’t stretched. Moody’s said the budget agreement won’t reduce the deficit enough to avoid a US downgrade, and the ratio of government debt to
READ MORE... →Salient to Investors: Winners in the Fiscal Cliff deal: Rich people because raising the threshold for higher taxes from $250,000 to $450,000 because taxes are assessed on marginal income. Red State Democrats because they duck partisan controversy, which is right where they want to be. The unemployed people. Doctors because
READ MORE... →Salient to Investors: The US nursing home industry overbills Medicare $1.5 billion a year for treatments patients don’t need or never receive. 30 percent of claims sampled from for-profit homes were deemed improper versus 12 percent from non-profits. At least 6 government and academic studies in the last 3 years
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