Salient to Investors: Peter Hooper at Deutsche Bank said it’s clear the stock market is the most important transmission mechanism of monetary policy – the stock market will have to carry the load. Hooper says the Fed will stick with the bond-buying strategy through next year, and end up buying $800 billion of Treasuries
READ MORE... →Salient to Investors: James Paulsen at Wells Capital Mgmt said recovering manufacturing will significantly reduce recession fears, while fears regarding the euro zone have been diminishing in recent months. mutual loan Richard Sichel at Philadelphia Trust said people should focus on economic news – equities end up being the investment of choice. Barron’s reported
READ MORE... →Salient to Investors: Michael Feroli at JPMorgan Chase said the moderately expanding economy should keep overall manufacturing growing, but it’s hard to see material acceleration going forward. Dirk Chlench at Landesbank Baden-Wuerttemberg said US manufacturing looks surprisingly good against a weak China and EU area and the fiscal cliff. Read the full article at http://www.bloomberg.com/news/2012-10-01/ism-index-of-u-s-manufacturing-increased-to-51-5-in-september.html
READ MORE... →Salient to Investors: Nigel Gault and Paul Edelstein at IHS Global Insight expects payroll growth won’t be enough to reduce the unemployment rate. Doug Roberts at Channel Capital Research said most of the rally is being driven by QE. Wasif Latif at USAA Investments said Spain will need to accept the offer from the ECB. bad
READ MORE... →Salient to Investors: Ethan Harris at Bank of America Merrill Lynch said central bank actions have clearly been a major factor in the market rally. Larry Kantor at Barclays said a modestly growing economy with depressed cyclically sensitive sectors is a relatively stable and safe environment, and when combined with a central bank
READ MORE... →Salient to Investors: The Census Bureau Gini Index shows income inequality reached a new high in 2011. Quarterly corporate profits have almost doubled since the end of 2008, while workers’ inflation- adjusted average hourly earnings have declined. Anne Mathias at Guggenheim Securities said said fifty years ago it was how the other half lived,
READ MORE... →Salient to Investors: Ryan Sweet at Moody’s Analytics said the consumer will be unable to lead the recovery. The saving rate dropped to the lowest since April, while disposable income had its weakest reading since November. The jobless rate has exceeded 8 percent for 43 months, the longest stretch since monthly records began in
READ MORE... →Salient to Investors: Alan B. Krueger at the White House’s Council of Economic Advisers said revisions suggest that the recession that began at the end of 2007 was deeper than initially reported, and the jobs recovery over the last 2.5 years has been stronger than initially reported. Macroeconomic Advisers sees growth tracking at
READ MORE... →Salient to Investors: An estimated nearly one out of two tomatoes eaten in the US comes from Mexico. Florida is the US’’s largest producer, followed by California. The risk of hurricanes in Florida makes it harder for growers there to set up greenhouse cultivation. Gary Clyde Hufbauer at the Peterson Institute
READ MORE... →Salient to Investors: Daniel Altman at NYU and BigThink says the biggest threat facing the global economy is short-term thinking, which has swept over the world in the past few decades. One cause is we can’t plan for the long-term as easily as we used to because of the growing complexity of
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