Global Economy in Twilight Zone as Stocks Suggest Growth1 – Bloomberg 09-18-12

Salient to Investors: Joachim Fels at Morgan Stanley said: It won’t take much to tip the world into a global recession Central banks in Europe, China, U.K. and Japan will further ease, thereby supporting asset prices, preventing deflation, helping avert sovereign defaults and maintaining economic growth. Central banks on their own cannot bring a sustainable

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Earnings in United States Are Beginning to Feel a Pinch – New York Times 09-16-12

Salient to Investors: Bellwethers FedEx and Intel expect lower quarterly profits because of weakness in worldwide demand. Wall Street expects quarterly profits at large American companies to decline for the first time since 2009. Ethan Harris at Bank of America Merrill Lynch said a lot of the profit gain over the past years came from a

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Treasuries Fall as Fed Plan Boosts Inflation Indicators – Bloomberg 09-15-12

Salient to Investors: The yield gap between the 10-yr and 30-yr Treasuries is at the highest in a year. Brian Edmonds at Cantor Fitzgerald said Treasuries are worried about inflation on the heels of open-ended stimulus. Sean Murphy at Societe Generale said the Fed leaving its purchases open-ended and extending its guidance means a steeper yield curve. QE3 is

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Contrarian Manager Wins by Buying Newspapers, Avoiding China – Bloomberg 09-13-12

Salient to Investors: Contrarian fund manager Bill Smead is: Bullish on the U.S. but bearish on companies exposed to China. Looks for strong balance sheets, industries with high barriers to entry, long histories of profits and dividends, p/e ratios below their 10-year average, strong insider ownership, and shareholder friendliness with regard to

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Retail Sales in U.S. Rose 0.9% in August on Auto Demand – Bloomberg 09-14-12

Salient to Investors: Millan Mulraine at TD Securities said retail sales are not as strong as the headline number suggests as the price of gas will divert from discretionary spending. Jenny Lin at Ford said economic fundamentals remain modest but stable. Read the full article at http://www.bloomberg.com/news/2012-09-14/retail-sales-in-u-s-increased-0-9-in-august-on-auto-demand.html

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China Gets Worst Ranking in Global Poll Since 2010 – Bloomberg 09-07-12

Salient to Investors: In a Bloomberg poll of 847 investors, analysts and traders: A quarter expect Chinese markets to be among the worst performers over the next year. 46 percent, the highest, say U.S markets offer among the best returns over the next year. 18 percent expect commodities to offer the highest

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S&P 500 Climbs to Four-Year High as ECB Details Bond Plan – Bloomberg 09-06-12

Salient to Investors: S&P 500 Index at highest since 2008. The Dow at highest since December 2007. Dan Veru at Palisade Capital Management said we are peeling away the uncertainties little by little, and Draghi is serious about putting Europe on a positive path. David Pearl at Epoch Investment Partners said the U.S. data is moving positively and we’re

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Gross Says Age of Credit Expansion Led Fund Returns Over – Bloomberg 09-05-12

Salient to Investors: Pimco’s Bill Gross said: Investors face an age of inflation, a headwind for both stocks and bonds. The cult of equity was dying, and long-term equity returns of 6.6 percent above inflation – the Siegel Constant – won’t be seen again. Institutional investors will find the highest returns in countries with faster growth

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