Bernanke Critics Can’t Fight Bonds Showing No Inflation – Bloomberg 12-11-12

Salient to Investors: The bond market shows no anxiety of inflation risk – the break-even rate for 5-yr TIPS, or yield difference between inflation-linked debt and Treasuries, is 2.07 percent.  The median economist expects growth of 2.2 percent in 2012 and 2 percent in 2013. Dean Maki at Barclays is convinced the Fed will get it just right,, and thus is providing

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Pimco Sees Global Growth Slowing After U.S. Tightening – Bloomberg 12-11-12

Salient to Investors: Saumil Parikh at Pimco said: Global growth will slow to 1.3 percent to 1.8 percent from 2 percent in 2012 as the private sector isn’t healthy enough to step in and extend credit amid deleveraging. The average economist expects growth of 2.5 percent in 2013. Central banks are effective

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Fed Seen Pumping Up Assets to $4 Trillion in New Buying – Bloomberg 12-11-12

Salient to Investors: 48 of 49 economists predict the FOMC will buy Treasuries to increase its program to buy $40 billion in mortgage bonds each month, and expect the Fed to wait until its March 19-20 meeting before adopting thresholds on unemployment and inflation.The median economist expects Fed purchases at least through Q1 2014. Economists expect a

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Gross May Shift Pimco to Lower Risk Profile in 2013: Tom Keene – Bloomberg 12-07-12

Salient to Investors: Bill Gross at Pimco said: Interest rates are so low and corporate spreads so tight that you have to be leery of prices going the other way. Structural headwinds may reduce real GDP below 2 percent in the US and other developed nations. With globalization, technological and demographic changes

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Bernanke Cliff Analogy Overstates Immediate Economic Harm – Bloomberg 12-07-12

Salient to Investors: Chad Stone at Center on Budget and Policy Priorities said the fiscal cliff conjures up Wile E. Coyote, but said “fiscal slope” is more acurate as the  effects would accumulate gradually during 2013. Neil Dutta at Renaissance Macro Research said those who argue that it’s a fiscal slope are ignoring the psychological impact on business and understates the

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