Salient to Investors: Mohamed El-Erian is to be appointed head of the US global development council. Read the full article at http://www.bloomberg.com/news/2012-12-24/obama-picks-el-erian-to-lead-global-development-council.html. Click here to receive free email alerts of articles as soon as they are posted.
READ MORE... →Salient to Investors: Mohamed El-Erian writes: Analysts will be hard pressed to explain how equity markets ended unchanged on the day of an unprecedented policy announcement from the Fed. The Fed’s shift to employment and inflation thresholds was a surprise as most analysts expected this would not occur until March 2013 at
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Interest rates are so low and corporate spreads so tight that you have to be leery of prices going the other way. Structural headwinds may reduce real GDP below 2 percent in the US and other developed nations. With globalization, technological and demographic changes
READ MORE... →Salient to Investors: David Rosenberg at Gluskin Sheff said: the economy is stuck in the mud and it will be a wageless recovery – the fiscal cliff would trigger a recession. Housing is bottoming out. and banking is on the mend and banks are more willing to lend money. likes gold-mining stocks and utilities, dividend-paying healthcare, utility and consumer-staples stocks. likes
READ MORE... →Salient to Investors: Stronger housing demand and hiring in the US and accelerating factory output and retail sales in China is providing international growth as Europe and Japan stagnate. Jim O’Neill at Goldman Sachs Asset Mgmt said improving China and the US is extremely good news. Tim Drayson at Legal & General Investment
READ MORE... →Salient to Investors: Money managers said fears that the US economy will slow as Obama and Congress fail to avert the fiscal cliff are overblown. Volatility across markets has declined, signaling investors are less worried about the economic outlook. Bettina Mueller at Deutsche Bank is astonished the market is turning so quickly, and expects
READ MORE... →Salient to Investors: Alice Rivlin at Brookings said the lesson of Europe is, don’t wait until you’re in a crisis to act and austerity is not a good prescription for weak economies. Rivlin said the US has the luxury the Europeans don’t, no pressure in the financial markets. Mohamed El-Erian at Pimco said the fiscal cliff would
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: Municipal debt is more attractive after the re-election of Obama. Investors should be careful of the long-end of the yield curve. TIPs are attractive. Bernanke is likely relieved as he knows he has more scope to continue with his unusual activism. The Fed will continue
READ MORE... →Salient to Investors: Economic growth will accelerate in the next four years as the headwinds become tailwinds. Consumers are spending more and saving less after reducing household debt to the lowest since 2003. Home prices are rebounding after falling more than 30 percent from their 2006 highs. Banks are increasing
READ MORE... →Salient to Investors: Bill Gross at Pimco said the Fed can do nothing but continue its accommodative monetary policies even with the U.S. economy adding more jobs than forecast last month. Pimco bought Spanish and Italian bonds on speculation that Draghi will come to the rescue. Mohamed El-Erian at Pimco said
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