Salient to Investors: Tony Crescenzi at Pimco said the payroll data will keep the Fed on the taper trail. Goldman Sachs said the FOMC will taper sooner than they had expected. Michael Feroli at JPMorgan Chase now expects tapering to begin at the September FOMC meeting. Lou Crandall at Wrightson ICAP said the jobs report
READ MORE... →Salient to Investors: Money managers reduced their net-long position in gold to the lowest since June 2007, while shorts climbed to the second-highest on record. ETP holdings are at a 3-year low. Banks from Goldman to Credit Suisse cut their gold forecasts last week. Mark Luschini at Janney Montgomery Scott said
READ MORE... →Salient to Investors: Binky Chadha at Deutsche Bank said the market had been pricing in that the Fed would normalize rates much more slowly than it has done historically, and the shock has spilled over across all of the asset classes. The World Bank said the world economy will expand 2.2 percent
READ MORE... →Salient to Investors: Gold traders are divided on the outlook for prices, as gold is poised for the biggest quarterly drop in at least 9 decades after investors cut bullion holdings to a 3-year low. Thorsten Polleit at Degussa Goldhandel said we are already at distressed prices really oversold, but a
READ MORE... →Salient to Investors: Gold dropped 23 percent this quarter, heading for its biggest loss since at least 1920 in London. A lack of accelerating inflation and mounting concern about the strength of the global economy is hurting silver, platinum and palladium, which are used more in industry than gold. Bart Melek at
READ MORE... →Salient to Investors: Only 3 emerging-market stock pickers avoided losing money in half1 by making prescient currency bets and buying companies insulated from economic swings and government interference. They recommend Philippine retailers, Chinese Internet companies and Indian drugmakers. Lewis Kaufman Thornburg Developing World Fund said there are many going wrong. Kaufman is overweight
READ MORE... →Salient to Investors: 10-year Treasuries yield 2.61 percent versus the S&P 500 aggregate earnings yield of 6.4 percent – more than double the average spread of 1.9 points since 2000. Investors are avoiding longer-term Treasuries, concerned that returns will be depressed for years, and money managers foresee the end of a rally that
READ MORE... →Salient to Investors: Ethan Anderson at Rehmann Financial said investors have been shaken by the concept of rising interest rates, a reduction in Fed stimulus, and uncertainty about the Chinese central banking system. Goldman Sachs cut its 2013 forecast for China’s economy and said the cash squeeze is hurting growth. Vasu Menon
READ MORE... →Salient to Investors: Themistoklis Fiotakis at Goldman Sachs said to curtail widening current account deficits, the Turkish lira, South African rand and Indian rupee would need to depreciate 30 percent on a trade-weighted basis, while the Brazil real and Chile peso need to fall 20 percent. Fiotakis said the EM bond
READ MORE... →Salient to Investors: Ted Harper at Frost Investment Advisors said the concern about the Fed removing QE signals a strengthening in conditions, which helps the dollar and at the margin hurts gold. Harper said John Paulson’s returns are emblematic of the difficult environment for gold. The World Bank raised its 2013 US growth
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