Salient to Investors: Ed Parker at Fitch Ratings said the US will be tipped back into recession if policy makers fail to avoid the fiscal cliff, affecting growth of country. Fitch may downgrade the US in 2013 unless lawmakers avoid automatic tax boosts and budget cuts and raise the debt ceiling. Read the
READ MORE... →Salient to Investors: Jeremy Lawson at BNP Paribas said the outlook in emerging markets is stronger than in Europe, and that’s where we would expect to see export growth. JPMorgan Chase expect Q3 GDP at a 2.8 percent annual rate. Scott Brown at Raymond James said job destruction has been trending very low, but the
READ MORE... →Salient to Investors: A strengthening economy will boost the president’s second term.The easy-money policy of the past four years is likely to continue throughout Obama’s second term. Job growth will increase tax revenue and help shrink the budget deficit while keeping taxes low and preserving essential spending – all without any magic from
READ MORE... →Salient to Investors: The US trade deficit narrowed in September, the smallest since December 2010 and lower than any estimate in surveyed economists – exports were broad-based. Growing demand from emerging markets in South and Central America may be helping to overcome a slowdown in Europe and China. Imports climbed as US consumers
READ MORE... →Salient to Investors: James Dunigan at PNC Wealth Mgmt said the fiscal cliff is going to be very messy, though we’ll get there. Alan Greenspan said the election perpetuated the political status quo and hasn’t increased the probability of resolving the fiscal challenges. Barry Knapp at Barclays recommended cutting risk, and lowered his estimate for the S&P 500
READ MORE... →Salient to Investors: Fidelity Investments and Pimco said the fiscal cliff and Fed bond purchases will drive demand for debt. Roger Bridges at Tyndall Investment Mgmt we’re back into political games – if we continue this policy uncertainty, then the economy will fall and bonds will rally. Bill Irving at Fidelity said people own government
READ MORE... →Salient to Investors: Peter Orszag at Citigroup said efforts to rein in federal deficit spending should be delayed until the US is better positioned to handle a contraction in government spending. Orszag said we need another round of infrastructure spending and tax cuts coupled with deficit reduction – an agreement on the fiscal
READ MORE... →Salient to Investors: Curtis Arledge at Bank of New York Mellon said the appointment of somebody like Erskine Bowles to be Treasury Secretary will show Obama cares about the deficit and is serious about cutting it. The Center for Responsive Politics said Goldman Sachs, Bank of America, Morgan Stanley, JPMorgan Chase and Credit
READ MORE... →Salient to Investors: Democratic gains in the Senate will make it more likely to focus on “advise and consent” than “obstruct and destroy.” Sanctions continue to erode the Iranian economy and incite public dissatisfaction with the Islamic regime. The rial has slumped as much as 40 percent against the dollar since
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: Municipal debt is more attractive after the re-election of Obama. Investors should be careful of the long-end of the yield curve. TIPs are attractive. Bernanke is likely relieved as he knows he has more scope to continue with his unusual activism. The Fed will continue
READ MORE... →