Salient to Investors: Capitulating bears and overseas buyers are drowning out every other concern for American stocks. Bulls say U.S. shares are becoming less vulnerable to global shocks and will keep rallying as skepticism eases among professional investors. Bears say indiscriminate buying shows the rally is in its last stages
READ MORE... →Salient to Investors: Hedge funds et al reduced net-long positions across 18 US futures and options last week, the largest decline since November 13, as signs of improving US growth reduced demand for gold and rains in South America added to signs that crop harvests will be bigger. Bets on higher gold prices
READ MORE... →Salient to Investors: James Paulsen at Wells Capital Mgmt said people are finally deciding that this looks more like a sustainable recovery. 75 percent of 341 S&P 500 companies so far reporting have beaten estimates, 67 percent have beaten sales estimates. The S&P 500 P/E is at 15 versus the average of 16.6
READ MORE... →Salient to Investors: James Paulsen at Wells Capital Mgmt said job creation, tame inflation and rising home prices support solid retail spending in 2013, but consumer cyclicals may underperform the market because these positive economic trends are already discounted – the S&P 500 GICS Consumer Discretionary Sector Index has outperformed the broader market by
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: EPFR Global said the increase in inflows into commodity funds in 2012 was 92 percent higher than the increase in 2011. The S&P GSCI, of which energy comprises 70 percent, fell 0.9 percent in 2012, the MSCI All-Country World Index rose 13 percent, the Dollar Index fell 0.9 percent, Treasuries returned 2.3 percent. Barclays
READ MORE... →Salient to Investors: Companies are paying special dividends at four times the pace of last year with rates poised to jump in 2013. The calendar is influencing even the payment of regular dividends. Dividends are regaining popularity after falling out of favor in the 1990s. Todd Lowenstein at HighMark Capital Mgmt said
READ MORE... →Salient to Investors: The S&P 500’s P/E ratio is below the ending level of 8 of the 9 bull markets since 1962, below the average of any bull market since Reagan, and up 35 percent since March 2009 versus an average 55 percent in bull markets since 1962. 245 of 500 S&P 500 companies have
READ MORE... →Salient to Investors: James Dunigan at PNC Wealth Mgmt said the fiscal cliff is going to be very messy, though we’ll get there. Alan Greenspan said the election perpetuated the political status quo and hasn’t increased the probability of resolving the fiscal challenges. Barry Knapp at Barclays recommended cutting risk, and lowered his estimate for the S&P 500
READ MORE... →Salient to Investors: James Paulsen at Wells Capital Mgmt said recovering manufacturing will significantly reduce recession fears, while fears regarding the euro zone have been diminishing in recent months. mutual loan Richard Sichel at Philadelphia Trust said people should focus on economic news – equities end up being the investment of choice. Barron’s reported
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