Salient to Investors: Mitch Tuchman at MarketRiders writes: Google Trends shows people are getting interested in stocks again, and the market rally has unleashed media stories about small investors getting back into equities. Stocks were never safe, nor will be. The bond market implies all kinds of risks that most
READ MORE... →Salient to Investors: Commonfund and the NACUBO said US university endowments lost on average 0.3 percent in the year ended June 30 after gaining 19.2 percent a year earlier. Over a third of the schools reported receiving less in donations than a year earlier. Harvard’s endowment fell 4.1 percent, Yale’s less than 1
READ MORE... →Salient to Investors: Phil Mause at Pacific Economics Group writes: Investors should buy up dividend stocks, business development companies (BDCs), REITs and other investments yielding more than bonds. A dividend stock led stock market could rise considerably – dips will be shallow as many investors will be waiting to get in.
READ MORE... →Salient to Investors: Doug Short at Advisor Perspectives writes: Statistics says that 99.7% of all daily movements should fall within three standard deviations of the mean, but Deutsche Bank research shows that three standard deviation movements are not as rare – some instances, like the 2008 financial collapse, happen over 25% of
READ MORE... →Salient to Investors: Martin Rothe at Altradis Capital writes: Most hedge fund strategies still largely depend on stock market performance and those not incorporating equities haven’t lived up to their promises. A strategy’s historical return may not necessarily predict future returns, but selecting strategies with distinct return distributions makes it
READ MORE... →Salient to Investors: Legg Mason is folding Bill Miller’s Legg Mason Capital Management division into its ClearBridge Investments equity unit as assets have tumbled and as it tries to reverse five years of client redemptions. Assets at Legg Mason Capital Management have fallen to $7 billion from a peak of $70 billion
READ MORE... →Salient to Investors: Coalition Ltd say investment banks are cutting jobs in equities faster than any other division. Tabb Group says trades that require human involvement cost 2.05 cents per share versus 1.08 cent for those done by computer. Mike Di Iorio at Barclays Capital says the way the business has been run will
READ MORE... →Salient to Investors: Barry Ritholtz at The Big Picture says: Obama has nowhere to go but up in selecting the new Treasury Secretary as Larry Summers and Tim Geithner were asleep at the switch when the crisis occurred and were there to help the banks and not service the taxpayers.
READ MORE... →Salient to Investors: Goldman Sachs’ Multi-Strategy Investing team’s survival shows how Goldman Sachs has worked around regulations curbing proprietary bets at banks. Matthew Richardson at NYU said the law does not bar longer-term wagers so leaves room for other risky investments. Richardson said from a systemic-risk perspective, it’s longer-term holdings which are
READ MORE... →Salient to Investors: Crispin Odey at Odey Asset Mgmt said the UK lacks leadership. Odey said history doesn’t allow precise identification of inflection points, but to ignore its lessons dooms one to repeat its mistakes. Phil Irvine at PiRho Investment Consulting said the biggest risk is not to take a risk.
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