Salient to Investors: The S&P 500 is down 4.1 percent in 2014, its worst start to a year since 2009. Of the S&P 500 companies: Almost 160 were below their 200-day moving average last week, more than any time in 2013 86 stocks set 1-yr highs when the index hit
READ MORE... →Salient to Investors: Gold analysts are the most bullish in a year, while short positions held by hedge funds et al rose almost fourfold from October to December 24th. The US Mint sold 56,000 ounces of American Eagle gold coins in December, the most since June sales gained 14 percent gain
READ MORE... →Salient to Investors: Higher debt costs will reduce buybacks and dividend increases. Borrowing costs for S&P 500 companies fell to 1.4 percent of sales the last 12 months, a record low in 11 years of data. Corporate bond yields are increasing the most since 2009 and are at 4.3 percent
READ MORE... →Salient to Investors: James Paulsen at Wells Capital Mgmt said concern that a surge in US bond yields will curb US growth is overblown because higher borrowing costs coupled with gains in confidence are a healthy sign for the economy. Paulsen said confidence is at the center of everything here and that since 1967, stocks
READ MORE... →Salient to Investors: Joseph Carson at AllianceBernstein said: Household finances are in the best shape in decades, and the US is entering a new, stronger growth phase as healthier finances revive borrowing, spur consumer spending, generate business investment and jobs. Household wealth measured by net worth rose to $70.3 trillion in Q1,
READ MORE... →Salient to Investors: Dan Denbow at USAA Precious Metals & Minerals Fund said Bernanke’s comments put positive feeling back into gold and all commodities. Standard Chartered said the cost of borrowing gold reached a 4 1/2-year high in London last week, and may be a bullish – gold may rally above $1,400
READ MORE... →Salient to Investors: Fed tapering, China’s credit squeeze, and Japan’s reflation ultimately prime the three biggest economies for less volatile and longer-lasting expansions, but near-term, emerging markets, commodity producers, and economies that need cheap cash or weaker currencies, including the euro area, could suffer. Stephen Jen at SLJ Macro Partners said that
READ MORE... →Salient to Investors: Shares of discount brokers are gaining the most since 2003 relative to the S&P 500, a sign that small investors are joining the 4-year bull market. Discount broker stocks beat the market by at least this much in 1997, 1999, 2003 and 2009, years in which the S&P 500
READ MORE... →Salient to Investors: Tech, energy and financial stocks are the most inexpensive industries in the S&P 500 with multiples of less than 14 times earnings. US tech stocks, the second-best industry of the past decade, are at 13 times projected earnings, the lowest level versus the S&P 500 in at least 7 years. Analysts
READ MORE... →Salient to Investors: Hedge funds have a net-short position on silver for the first time since at least 2006, but holdings in ETPs are within 1.3 percent of the all-time high reached in mid-March 2013. Silver entered a bear market on April 2. The median analyst expects silver to rise to an
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