Salient to Investors: Bill Gross at Pimco said: Payroll growth in November signals at least a 50 percent chance the Fed will taper in December as it clearly wants out, but must be careful given the tepid growth of 2 percent. The median analyst predicts the Fed will taper to
READ MORE... →Salient to Investors: The smallest US current-account deficit since 1999 shows the US is a lesser supporter of global growth than in the past. Exploration and production are adding to growth, reducing spending on imported energy, cheaper fuel and raw materials are boosting manufacturing, making the US more of a
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: The Fed’s determination to taper puts more risk in risk assets, such as stocks. The safety margin built into risk assets is much less now. The Fed is wary of upsetting financial markets, as it sees financial market strength as a key
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: The global economy will expand 2.75 percent to 3.25 percent in 2014. The big question is less the next 12 months and more what comes after, given we are being sustained by experimental, untested policies. The US and Japan have outperformed other
READ MORE... →Salient to Investors: Disruptions to the economy prompted speculation the Fed would maintain the pace of its $85 billion in monthly bond purchases. BlackRock Inc. and Pacific Investment Management Co. say the Fed will postpone tapering as a result of the debt-ceiling debate. Russ Koesterich at BlackRock said the disruption
READ MORE... →Salient to Investors: Bill Gross at Pimco said the Fed is committed to taper, which will be lite: it will probably reduce its assets purchases by $10 billion and focus on Treasury bonds. Mohammed El-Erian said there are no great choices for the Fed at this point, and today’s jobs number tells
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: Weakening emerging-market growth and spiraling currencies risk creating headwinds for a recovering US economy. Longer-term, we should care due to the feedback loop to the US. We will see a tightening of financial conditions to markets, with growth more challenged and the ability of
READ MORE... →Salient to Investors: US companies have issued $241 billion in junk bonds this year, more than twice the amount during the same period in 2007. US stocks are near record highs. Investors’ use of borrowed money to buy stocks is up one-third in the past year to a near record. Housing prices are surging in
READ MORE... →Salient to Investors: James Bullard at FRB of St. Louis said the Fed should wait for evidence the labor market and economy are strengthening before tapering purchases. Bullard said the Fed will probably hold mortgage-backed securities among its assets longer than it had expected and make a decision on what to
READ MORE... →Salient to Investors: Bill Gross at Pimco said the Fed won’t tighten monetary policy until 2016 at the earliest, and added to mortgage securities in June. Mohamed El-Erian at Pimco said 10-yr Treasury yields may drop to 2.2 percent in 2013. Read the full article at http://www.bloomberg.com/news/2013-07-21/pimco-s-gross-says-fed-will-tighten-policy-in-2016-at-earliest.html Click here to receive free and immediate email
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