Salient to Investors: Paul Singer at Elliott Management said China’s debt-fueled stock market crash is way bigger than the US subprime mortgage crisis but may not be enough to cause a global financial market meltdown. Bill Ackman at Pershing Square Capital Mgmt said China is a bigger global threat than Greece by far, their stock
READ MORE... →Salient to Investors: Jeffrey Gundlach at DoubleLine Capital said: The Shanghai Composite Index is worth a speculation, but his favorite stock market long-term is India. Yields on 10-yr US Treasuries may reach 2.65% this year. Does not own any foreign currency bonds – the biggest risk in a rise in yields
READ MORE... →Salient to Investors: Jim Vogel and Chris Low at FTN Financial said: Treasuries are years away from reverting to pre-financial crisis levels as growth remains weak and several hundred thousand people fall out of the labor force. Yields will end 2014 at 2.55 percent versus the median estimate of 3.07 percent.
READ MORE... →Salient to Investors: Jason Brady at Thornburg Investment Mgmt recently bought Treasuries as yields approached a 2-yr high of 3 percent. Brady said every single strategist decided towards the end of 2013 that stocks were the best thing in the world and bonds were the worst thing in the world
READ MORE... →Salient to Investors: A shift by household investors from bonds into equities is being muted as pension funds and insurers boost fixed-income assets to match future obligations. JPMorgan Chase and Milliman said US companies with the largest defined-benefit pensions raised allocations to fixed-income to 41.3 percent from 36 percent in
READ MORE... →Salient to Investors: Stanley Druckenmiller said: If the Fed were to end QE it would be a big deal for the financial markets, as indicated by the sell-off in bonds and emerging markets in the past few months on the mere hint that the Fed might taper. Fed purchases have subsidized all
READ MORE... →Salient to Investors: Morningstar says 10 percent of the TIPS market is owned by Pimco. Jeffrey Gundlach at DoubleLine says TIPS are a disaster and a trap because unless inflation rises, all you have is interest rate risk, just like every other Treasury – it is an asset class that is exposed
READ MORE... →Salient to Investors: TrimTabs Investment Research and the Money Fund Report report bond funds saw $61.7 billion of withdrawals last week. Market bears say yields barely exceed inflation, leaving little relative value in bonds as the global economy improves. Pimco, BlackRock, and DoubleLine Capital say the worst is over because the
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: Bond managers are telling investors the worst may be over for T-bonds after 10-year yields rose to a 22-month high. Jeffrey Gundlach at DoubleLine Capital says July will not be the same type of month and 10-yr yields will be meaningfully lower by the end of 2013 Gundlach said
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