Saient Points: Charles Plosser at FRB of Philadelphia said QE3 won’t boost growth or hiring and may jeopardize the Fed’s credibility, which may be forced into selling assets in the open market when it needs to reduce stimulus. Central banks can’t effectively target employment levels the same way they can guide inflation rates
READ MORE... →Salient to Investors: More than a million of the college graduate class of 2008 have gone back home. The number of 26-year-olds living with parents is up 46 percent since 2007: a quarter of American adults between the ages of 18 and 30 now live with parents. Read the full article at
READ MORE... →Salient to Investors: Malcolm Polley at Stewart Capital said things won’t improve as fast as people think, and Fed’s actions won’t lead to higher growth. FRB of Philadelphia President Charles Plosser said this months new bond buying by the Fed won’t boost growth or hiring and may jeopardize Fed credibility. The Dow is 5.3 percent from its
READ MORE... →Salient to Investors: Bloomberg Consumer Comfort Index at a four-month high in September, Thomson Reuters/University of Michigan preliminary sentiment index at second highest level in five years – due in part to rising stocks and property values. The Conference Board’s index decreased in August from in July, the biggest drop in 10 months. Andrew
READ MORE... →Salient to Investors: Scott Anderson at Bank of the West says the economy is in a soft patch, with consumer spending suggesting moderate growth and resilience in auto sales and building materials a bright spot. Carl Riccadonna at Deutsche Bank Securities said lasting damage is being done by the threat of the fiscal cliff. Read the
READ MORE... →Salient to Investors: Ray Dalio of Bridgewater Associates said: The euro will survive because austerity measures deterring growth will be balanced by ECB intervention, says southern Europe will suffer a managed depression lasting as long as 15 years. Countries in northern Europe are more likely to leave the euro currency bloc than indebted countries in the
READ MORE... →Salient to Investors: Jason Rogan at Guggenheim Partners said the economy is not double-dipping into another recession,but growth is not robust. Thomas Roth at Mitsubishi UFJ Securities USA said low volatility is not going to go away. Hedge-fund managers et al reversed to a net-short position in the week ended Sept. 18. David Coard at Williams Capital
READ MORE... →Salient to Investors: FRB Dallas President Richard Fisher said: QE3 won’t work due to Congress inaction and excessive government regulation, which are holding back hiring and investment Residential real estate is a recent bright spot QE3 risks higher inflation – if you allow higher prices, how credible are you in clawing them back? Read the full article
READ MORE... →Salient to Investors: Texas bonds this year have outperformed other top-rated states. John Bonnell at USAA Investments said the nation’s second-biggest economy shields Texas from cutbacks and lures bond investors, with demand for almost everything in Texas. Robert Dye at Comerica said: The population of Texas, the second-most-populous state, is younger than the U.S. average
READ MORE... →Salient to Investors: Jim Chanos at Kynikos Associates says: He expects declines in companies that may be inexpensive compared with earnings, like in natural gas, which have enormous cash needs, and iron-ore producers, where industry capacity will expand globally even as demand stalls because of China’s slowdown A number of high-profile natural gas companies may be in financial
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