Salient to Investors: Gary Cohn at Goldman Sachs said junk-bond yields at record lows may face substantial repricing if interest rates spike or investors exit fixed income. Cohn said that at some point, interest rates will rise and some of the money that has piled into fixed income over the past 3 years
READ MORE... →Salient to Investors: Damien Courvalin and Alec Phillips at Goldman Sachs said gold will climb to $1,825 in 3 months – consistent with rallies into debt-ceiling decisions – and then decline in half2 2013 as the US economy rebounds. Tom Kendall at Credit Suisse expects lower prices in half2 as the U.S. recovers and fear trades fade. Allan Hochreiter said
READ MORE... →Salient to Investors: Christin Tuxen at Danske Bank predicts gold will average $1,720 an ounce in 2013 as central-bank stimulus will sustain buying as a hedge against inflation and currency devaluation, and $1,600 in 2014 as economic growth curbs demand. Tuxen said the prospect of the Fed stopping easing and improving economic activity
READ MORE... →Salient to Investors: David Kostin at Goldman Sachs said volatility – the drawdown risk – will deter investors from moving into stocks from bonds in 2013 even as dividend returns exceed fixed-income yields. Kostin said most investors will sell US government bonds if losses push the 10-yr Treasury yield to 3 percent from 1.85
READ MORE... →Salient to Investors: James Paulsen at Wells Capital Mgmt said Apple is the story for the market and proxy for other companies and industries. James Cordwell at Atlantic Equities Service said IPhone sales are slowing because smartphones have saturated developed markets. Almost 80 percent of the 28 S&P 500 companies so far
READ MORE... →Salient to Investors: Goldman Sachs expects hedge funds to return an average of 4 percent to 5 percent over the next 5 years amid low interest rates. Hedge funds trailed global stocks in 2012 for the fifth time in 7 years: a 6.7 percent gain versus 17 percent for the MSCI All-Country
READ MORE... →Salient to Investors: Goldman Sachs’ Multi-Strategy Investing team’s survival shows how Goldman Sachs has worked around regulations curbing proprietary bets at banks. Matthew Richardson at NYU said the law does not bar longer-term wagers so leaves room for other risky investments. Richardson said from a systemic-risk perspective, it’s longer-term holdings which are
READ MORE... →Salient to Investors: John Paulson said the euro would fall apart and bet against the region’s debt. Morgan Stanley predicted the S&P 500 would lose 7 percent and Credit Suisse predicted wider swings in equity prices. Warren Buffett called bonds dangerous. The largest banks and most-successful investors failed to anticipate how government actions would influence
READ MORE... →Salient to Investors: Hiroyuki Ito at Goldman Sachs is bullish on Japanese stocks in 2013 due to the end of the yen strength that has hurt Japanese industry: likes Japanese machinery and electronics exporters, financial firms and electricity producers. Ito said Japan finally has a catalyst for the stock market to rise as the new
READ MORE... →Salient to Investors: Indian policies to lure foreign investors are driving the nation’s largest money managers to buy automakers, property companies and metal producers that stand to benefit most from a recovery. Overseas investors bought a net $24.2 billion of Indian stocks in 2012, the most among 10 Asian markets excluding
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