Salient to Investors: Laurence Fink at BlackRock said investors will continue to put money into passive stock products rather than active funds as they get back into equities. Fink expects the economy to pick up in half2 2013. US stock mutual funds attracted $14.8 billion in new money last week, the most
READ MORE... →Salient to Investors: Jay Schwister at Baird Advisors said Pimco underestimated how big the policy response would be and what type of positive impact it would have on financial markets, despite the new normal they forecast is playing out. Saumil Parikh at Pimco said policy distortions cannot continue indefinitely, so 2013
READ MORE... →Salient to Investors: Bill Gross at Pimco recommends avoiding longer-term Treasuries because of steps to boost the economy. Guy Davidson at AllianceBernstein said longer bonds have much more downside than upside, and recommends switching to the 10-yr to 15-yr maturity range. The median economist expects the Fed to continue to buy Treasuries at
READ MORE... →Salient to Investors: Jonathan Gray at Blackstone said: Investors have less than 2 years to buy foreclosures before competition and rising prices shrink the pool of cheap assets. The opportunity for funds to buy homes at discounts could last less than 2 or 3 years and the recovery in house prices could surprise people. The
READ MORE... →Salient to Investors: BlackRock’s junk bond ETF reported an outflow of 2.4 million shares yesterday, the biggest daily withdrawal in its five-year history. The five largest junk-bond ETFs have lost $1.97 billion of assets since Sept. 20 as investors sour on a four-year rally in junk debt. Read the full article at
READ MORE... →Salient to Investors: The days of instant rewards from the stock market are over. Larry Fink at Blackrock says be 100% in equities, prefers stocks to bonds. Bill Gross at Pimco says the cult of equities is dead but sees stocks offering double the nominal return of bonds over the next several
READ MORE... →Salient to Investors: BlackRock is reducing holdings of speculative-grade munis and buying those rated A to AA as the US faces the fiscal cliff. Laurence Fink at Blackrock said the economy may go into recession next quarter as companies curb hiring. Sean Carney at BlackRock said there’s ample liquidity in the high-yield market as everyone wants it. Peter
READ MORE... →Salient to Investors: Mark McCombe at BlackRock said China’s economic growth is poised to recover after once-in-a-decade leadership transition, and boost stock markets . The focus on consumption will benefit health-care and education stocks. BlackRock and Citigroup say policies to boost China’s growth will be clearer after the leadership change. Other analysts. Chen Ruiming at Haitong Securities
READ MORE... →Salient to Investors: Laurence D. Fink at BlackRock says: Investors should get out of cash and low-yielding bonds and buy high-quality stocks, ETFs and higher-income products. The economy is a year away from being more robust. The US banking system is far better than others, while housing crisis is 90 percent behind us. Chris Leavy at BlackRock said equities
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