Salient to Investors: Kurt Brouwer at Brouwer & Janachowski said Pimco have mishandled their corporate decisions but from a money-management perspective he has no issue with Pimco. Pimco’s Total Return Fund is on track to underperform a majority of rivals for the third year in four. Sanford Bernstein said Gross’s departure may mean
READ MORE... →Salient to Investors: Michael Gapen at Barclays Capital said the late 1990s was a very good period for the US economy, with Greenspan making the correct call on monetary policy; but the general consensus is that Fed policy in the run-up to the housing bust prior to the 2007-2009 recession
READ MORE... →Salient to Investors: Owen Murfin at BlackRock said: Bond investors have been too hasty to bet the ECB will buy sovereign debt The ECB’s target of increasing its balance sheet by $1.29 trillion is ambitious and the poor take-up of new cheap loans offered to banks is no guarantee of QE –
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Insufficient credit creation with 2% economic growth jeopardizes US growth because our credit-based financial economy depends on an ever-expanding outstanding level of credit for its survival. If the credit growth is more than 4.5% a year, then private and public sectors must create
READ MORE... →Salient to Investors: Ramin Toloui at Pimco said: Asian growth is stabilizing but not stellar but may receive a boost in 2014 as developed markets accelerate. Asia’s trajectory will continue to be shaped critically by the growth path in the U.S. and Europe China’s growth in the next decade requires
READ MORE... →Salient to Investors: Brad Kinkelaar at Pimco said: The underperformance of many high-dividend stocks in the past 8 months shows a sentiment shift already is under way. If rates continue to rise through 2014, albeit gradually, telecom, utility and REITs should continue to underperform the market. Look for stocks with
READ MORE... →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: Paul Montaquila at Bank of the West said the jobs number was expected but not a blockbuster number, and the steady diet of better numbers are not enough to give the market the clarity they want. Sean Simko at SEI Investments said the market was pricing in
READ MORE... →Salient to Investors: Bill Gross at Pimco said: The unprecedented cash added to the financial system by central banks is raising the risk of a slide in global asset prices. Global economies and their artificially priced markets are increasingly at risk, but the unwinding may occur gradually.” The Fed, BoJ,
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
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