Salient to Investors: The last time consumer-price increases were slowing before the Fed started raising rates was in 1994, when Treasuries lost 3.3% and Greenspan doubled the benchmark rate to 6% despite inflation being at a 7-yr low of 2.5%. Gary Pollack at Deutsche Bank said the critical example for
READ MORE... →Salient to Investors: Stephen Antczak et al at Citigroup said: Each of the 5 times since 1980 that the Fed started raising its benchmark rate, the extra yield on corporate bonds over government debt narrowed in the following 6 months as accelerating growth boosted optimism. Spreads will tighten this time also,
READ MORE... →Salient to Investors: Julian Robertson at Tiger Mgmt said bonds are at ridiculous bubble levels as governments worldwide buy bonds to keep their countries growing. Robertson said the bond bubble will end very badly but is finding equity opportunities in great companies, like Alibaba. Leon Cooperman at Omega Advisors said
READ MORE... →Salient to Investors: JC O’Hara at FBN Securities said the spread between the Russell and S&P 500 is widening again and worrying traders who want to see small caps participate.” Jonathan Krinsky at MKM Partners sees a good chance of US equities declining modestly into early October, citing deteriorating breadth and seasonal weakness.
READ MORE... →Salient to Investors: Julian Robertson at Tiger Mgmt said: You cannot expect spouses who love each other and are in the stock business not to talk stocks. People that compete well in one thing compete well in other things. In the hedge-fund industry, a few stock picks can make or break
READ MORE... →Salient to Investors: Billionaire hedge fund managers have been heavily buying gold. John Paulson has been accumulating gold and gold mining stocks at a fevered pace. George Soros, Louis Moore Bacon, Julian Robertson et al have been buying gold, mining equities and ETPs. Bill Gross at Pimco has urged investors to buy precious metals. George
READ MORE... →Salient to Investors: Julian Robertson at Tiger Management said hedge funds positioned for a “disaster” are making a mistake – so bearish that they’re not going to get out of it without a black-swan type event. The Bloomberg Global Aggregate Hedge Fund Index is up 3.1 percent in 2012 through September versus
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